Rhodia Food Ingredients goes to Danisco
13rd February 2004
It was announced today by Danisco that Rhodia have entered into an agreement with them to negotiate exclusively with Danisco on the sale of Rhodia's Food Ingredients business.
Troubled French chemical company Rhodia have divested their food ingredients business which was built up over several years and included some well known hydrocolloid businesses including the Meyhall galactomannan business. We have been informed that the deal does not include the Gelymar business or the Phosphates business of Rhodia.
The full release reads:
Danisco has signed an agreement with French Rhodia to negotiate exclusively for the takeover of Rhodia´s food ingredients business, excluding the company´s food phosphates business.
Rhodia´s food ingredients business is a global supplier of cultures, natural texturants, and food protection solutions to food processing companies. The company is present in Europe, North America, Latin America and Asia. The primary focus areas of the business are: dairy, dessert, beverage & health products, meat & savoury and bakery products. These products are to be integrated into Danisco´s global product offering.
The two parties expect to conclude an agreement in the foreseeable future. The transaction will be finalised within the second quarter of the calendar year 2004, once legal authorisations have been obtained.
Rhodia´s food ingredients business generated sales of DKK 1.6 billion (EUR 211 million) in 2003 and has 860 employees.
Rhodia´s product portfolio complements Danisco´s existing core business. The takeover of the above-mentioned Rhodia activities is in line with Danisco´s strategic goal to further strengthen the business platform through acquisitions and organic growth above market average.