Glanbia Ventures into US Flavour Market with $300 Million Flavor Producers Acquisition
Source: The DairyNews
Glanbia, a leading global nutrition company, has finalized an agreement to acquire Flavor Producers from Aroma Holding in a landmark deal valued at $300 million.
Flavor Producers, headquartered in the United States, specializes in providing a diverse range of flavors and extracts to the Food and Beverage industries, with a distinct focus on organic and natural ingredients. The acquisition aligns seamlessly with Glanbia's strategic objectives, particularly in bolstering its Better Nutrition platforms.
Upon completion of the acquisition, Glanbia will integrate Flavor Producers into its Glanbia Nutritionals Nutritional Solutions business, thereby expanding its portfolio and enhancing its capabilities in the flourishing natural and organic flavors market segment.
Hugh McGuire, CEO of Glanbia, expressed enthusiasm about the acquisition, emphasizing its significance in advancing the growth trajectory of Glanbia's Nutritional Solutions business. McGuire underscored the strategic importance of mergers and acquisitions in Glanbia's growth strategy, citing the transaction as a pivotal opportunity to fortify the company's market position and capitalize on emerging growth prospects in the flavors sector.
The agreement includes an initial consideration of $300 million, with the potential for an additional deferred payment of up to $55 million, contingent upon performance in 2024. Financing for the acquisition will be facilitated through Glanbia's existing banking facilities and cash reserves.
The transaction is slated for closure in the first half of FY 2024, subject to customary closing conditions and agreed completion accounts. Glanbia anticipates leveraging this acquisition to drive synergies, unlock new growth avenues, and reinforce its position as a leading player in the global nutrition and flavors landscape.
Upon completion of the acquisition, Glanbia will integrate Flavor Producers into its Glanbia Nutritionals Nutritional Solutions business, thereby expanding its portfolio and enhancing its capabilities in the flourishing natural and organic flavors market segment.
Hugh McGuire, CEO of Glanbia, expressed enthusiasm about the acquisition, emphasizing its significance in advancing the growth trajectory of Glanbia's Nutritional Solutions business. McGuire underscored the strategic importance of mergers and acquisitions in Glanbia's growth strategy, citing the transaction as a pivotal opportunity to fortify the company's market position and capitalize on emerging growth prospects in the flavors sector.
The agreement includes an initial consideration of $300 million, with the potential for an additional deferred payment of up to $55 million, contingent upon performance in 2024. Financing for the acquisition will be facilitated through Glanbia's existing banking facilities and cash reserves.
The transaction is slated for closure in the first half of FY 2024, subject to customary closing conditions and agreed completion accounts. Glanbia anticipates leveraging this acquisition to drive synergies, unlock new growth avenues, and reinforce its position as a leading player in the global nutrition and flavors landscape.
