EQT-owned Oterra, formerly known as Chr. Hansen Natural Colors, has announced that it is in discussions to acquire Diana Food’s natural food colouring business from Symrise.
In compliance with French legal requirements, the deal has been presented to Diana Food’s trade unions today. Depending upon the consent and processing time, the companies expect the purchase agreement to be finalised in the coming months.
Symrise says offloading its food colouring business will enable the company to focus on its flavour and nutrition segment.
According to Symrise, the potential acquisition would affect around 80 employees in two production facilities located in France and the UK. Diana Food’s Cossé le Vivien site in the northwest of France has a history of red beet and carrot processing; while its Holbeach facility in the UK produces an extensive range of natural and synthetic colours for the food and beverage industries.
Jean-Yves Parisot, president of Symrise’s flavour and nutrition business, said: “Symrise welcomes the offer from Oterra. It supports our goal to strengthen the focus of the flavour and nutrition segment on its core expertise in taste, nutrition and health in food, pet food and aqua feed application areas.
“For strategic reasons, it therefore makes a lot of sense for us to seek a partnership with a potential buyer and divest the food colouring business.”
The deal – if its goes ahead – will mark the second acquisition by Oterra, following its purchase of Secna Natural Ingredients Group. The Denmark-headquartered company changed its name to Oterra after it was bought by investment firm EQT.
“The carve-out of Diana Food’s colouring business from Symrise is strategically important to Oterra, and after less than three months of new ownership we are already strongly progressing on our ambitious growth journey,” said Cees de Jong, chairman of Oterra.
Odd Erik Hansen, Oterra CEO, added: “Diana Food has built an impressive business under Symrise, and we look forward to continuing Diana Food’s strong customer and supplier relationships. This deal will further strengthen Oterra’s access to high quality raw materials, and complement our agronomy competencies.”
© FoodBev Media Ltd 2021
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry. Don’t miss out on having your innovations recognised on a global scale.
Deadline for entries 23 July – enter now!
Don’t get left behind
Start your free Foodbev magazine trial today and join thousands of fellow industry professionals in receiving food and drink trends direct to our business.
Click here to start your free trial
Your privacy We use small files known as ‘cookies’ to enhance your experience of the FoodBev website and analyse site-traffic. Read about how we use cookies or how you may control them in our updated privacy policy and cookie policy. If you continue to use this site, you consent to our use of cookies. Click the ‘OKAY‘ button at the top right of this panel to accept or click here for more information.