Glanbia has entered into an agreement with the owner of Flavor Producers, Aroma Holding Company, with the $300m deal subject to add-ons of up to $55m that are conditional on performance in 2024.
Based in Valencia, California, Flavor Producers is a leading flavour platform in the US that provides flavours and extracts to the food and beverage industry.
The firm is focused on organic and natural ingredients, and is set to operate within the Glanbia Nutritionals business unit once the acquisition is complete.
The transaction is reflective of Glanbia’s approach, which is centred on acquiring complementary businesses, with Flavor Producers significantly expanding its flavours offering and bringing new capabilities in the growing natural and organic flavours market.
With more than 40 years of experience, Flavor Producers possesses a track record of innovation, an excellence in R&D and proprietary ingredients and an extensive flavour library.
In the 12 months to February 2024, Flavor Producers delivered $86.1m net sales and adjusted EBITDA (before non-recurring costs) of $19.7m, while the gross assets of the company as of February were $321m.
Commenting on the transaction, Glanbia chief executive Hugh McGuire 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.”
Headquartered in Kilkenny, Ireland, Glanbia operates sites in 30 countries around the world, while its products are sold in 130.
In other news, a mushroom producer has been fined £73,333 after an employee’s leg became trapped in a machine and was later amputated.