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
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