Flavourings firm Givaudan in plant-based extract acquisition

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.