Irish nutrition firm Glanbia has agreed to acquire Flavor Producers, a US-based ingredients business.
The firm supplies flavours and extracts to the food and beverage industries, with a focus on organic and natural ingredients. In the 12 months to February 2024, it generated sales of $86.1m and adjusted EBITDA of $19.7m.
The initial consideration of the transaction is $300m with an additional deferred payment of up to $55m, conditional on performance in 2024
Glanbia stated that the deal was consistent with its strategy of acquiring complementary businesses to grow its ‘Better Nutrition’ platforms.
CEO Hugh McGuire commented: “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.”
