Flavourings Firm Givaudan In Plant-Based Extract Acquisition

Swiss flavourings giant Givaudan has bolstered its natural ingredients offer after agreeing to buy a 40.6% stake in French firm Naturex for €522m (£457m), and launching a cash tender offer for the remaining shares.

Givaudan said it would create “clear market leadership in natural extracts and ingredients” once the deal for Naturex – which specialises in plant-based extracts – was approved by regulators.

The acquisition was part of its 2020 strategy to strengthen its capabilities in natural flavours, it added.

The development follows a number of acquisitions made by Givaudan in recent years, including Spicetec, Activ International, Vika and Centroflora Nutra.

Outstanding Naturex shares

The remaining outstanding Naturex shares will be available for €135 per share. Givaudan said the Naturex board of directors and management were “fully supportive” of the transaction.

Headquartered in Avignon, Naturex operates 16 production sites and employs 1,700 people globally. It reported sales of €405m in 2017.

Givaudan chief executive Gilles Andrier said: “The acquisition of a significant shareholding in Naturex fits fully with our 2020 strategy to expand our offering to deliver natural products to our customers.

“Givaudan is the global leader in the space of natural flavours and Naturex further complements our capabilities with its strong portfolio of plant extracts and natural ingredients across the food & beverage, nutrition & health and personal care sectors.

‘Secure their support for the acquisition’

“We look forward to working with the management and shareholders of Naturex in the coming months to secure their support for the acquisition.”

Louie D’Amico, president designate of Givaudan’s Flavour Division, added: “Consumers around the world are increasingly demanding more natural and organic products from food and beverage companies.

“Naturex will be extremely complementary to the acquisitions we have announced in this space over the last few years.”

Givaudan has a presence in more than 100 locations and employs 11,100 people worldwide. Sales for 2017 were CHF5.1bn.