Glanbia has entered into an agreement with the owners of Flavor Producers to acquire the business for an initial consideration of $300 million plus deferred consideration.
Flavor Producers is a leading flavour platform in the US, providing flavours and extracts to the food and beverage industries, with a focus on organic and natural ingredients. Glanbia will operate Flavor Producers within its Glanbia Nutritionals (GN), Nutritional Solutions business (NS or Nutritional Solutions).
Hugh McGuire, Chief Executive Officer of Glanbia, said: “I am delighted to announce the acquisition of Flavor Producers, which represents an important step in the continued growth of our Nutritional Solutions business.
“This acquisition builds on our existing flavours capability and positions us well to capture long term growth opportunities in the organic and natural flavours segments.
“M&A is an important part of our growth strategy and this transaction represents a further opportunity to scale our NS business, unlock synergies and acquire unique and complementary capabilities.”
The initial consideration is $300 million with an additional deferred payment of up to $55 million, conditional on performance in 2024.