The move was confirmed shortly before Oterra's further acquisition of US-based Food Ingredient Solutions, which operates sites in Teterboro, New Jersey, and Marshfield, Missouri.
The company first announced its intent to acquire Diana Food's natural colourings business in September 2021.
Oterra said it would now begin the work of fully integrating the Diana Food segment into its portfolio as soon as possible.
Boosts global footprint
The acquisition - now one of three in six months since Oterra became a standalone company - boosts its global footprint, adding two Diana Food sites - Cossé in France and Holbeach in the UK, Oterra said. It brings the company’s production site tally to ten.
The Holbeach factory is capable of manufacturing natural and artificial colors, colour blends, and coloring extracts in liquid, paste, and granular or powder mediums. The ingredients are used in dairy, seasonings, and confectionery applications, as well as ice cream, decorations, coatings, bakery and jellies, sauces, meat products, snack food, fish products, flavoured processed cheese, and beverages.
Organic colours markets
The deal gives Oterra a stepping stone into the organic colours markets. It would allow it to offer its customers and market partners organic colours certified for sale to consumers in the US and the EU. It would also strengthen its backwards integration of red beet, Oterra confirmed in a statement on the transaction.
Commenting in the statement, Odd Erik Hansen, chief executive officer of Oterra said Diana Food had grown red beet for natural coloring for more than 30 years.
"Their innovation and expertise will be strong additions to our portfolio. I look forward to not only offering Oterra’s customers a wider portfolio, but also having the opportunity to open the industry’s most comprehensive portfolio up to existing Diana customers,” said Hansen.
Food Ingredients Solutions acquisition
Oterra said its purchase of Food Ingredient Solutions, which was announced on 3 January 2022, marked its first US-based acquisition.
“North America is one of the fastest growing natural colors markets, and this acquisition puts Oterra in a great position to further support our customers in the conversion towards natural colors,” said Cees de Jong, chairman of Oterra.
Jeff Greaves, founder and chief executive officer of Food Ingredient Solutions, is set to join Oterra. “We have a strong local presence and great customer relationships, and as Oterra we will be able to offer our customers access to the most extensive portfolio of natural colors in the world,” said Greaves.