Switzerland-based Givaudan, the global leader in the fragrance and flavor industry, agreed to acquire the Spicetec Flavors & Seasonings business from ConAgra Foods Inc. (NYSE: CAG), for $340 million. Givaudan plans to fund the deal from existing resources.
Spicetec offers a range of flavors, spices and savory seasoning solutions to customers, primarily in North America and operates from locations in Omaha, Nebraska; Carol Stream, Illinois and Cranbury, New Jersey, employing 280 people.
The deal is expected to add approximately $185 million to Givaudan’s annual revenue. The company achieved sales of $4.44 billion in 2015.
“This acquisition fits with our 2020 strategy to expand our offering to deliver integrated solutions where flavour and taste play a key role,” said Gilles Andrier, CEO of Givaudan. “Spicetec brings complementary capabilities to Givaudan with its strong portfolio of spices, seasoning blends and natural solutions.”
“Divesting Spicetec is the latest action we have taken that will allow ConAgra Foods to invest resources into our core product portfolio to drive sustainable growth,” said Sean Connolly, president and CEO of ConAgra.
The transaction is subject to customary closing conditions and regulatory clearances, and is expected to close in approximately 60-90 days.
BofA Merrill Lynch acted as the exclusive financial advisor to ConAgra Foods on the transaction.
Givaudan is the global leader in the creation of fragrances and flavors. From its historic roots in Grasse in 1768 to the purchase of Induchem in 2015, Givaudan has pursued a philosophy of innovation, acquisition, creativity, and passion, enriching the world of scents and taste. Headquartered in Switzerland with a local presence in over 80 locations, Givaudan has more than 9,500 employees worldwide.
Givaudan’s comprehensive knowledge of local flavors, extensive global footprint and strategic insights, enable close partnerships with food, beverage, consumer product and fragrance partners, as well as customers wherever they may be.
With a customized approach to product creation, the Flavor Division is a powerhouse of knowledge, innovation and creativity equipped to surprise customers and consumers with fresh, unique ideas and solutions. Givaudan creates lasting flavor and taste experiences that touch emotions across key segments including beverages, sweet goods, savory and snacks.
ConAgra Foods is one of North America’s leading packaged food companies with recognized brands such as Marie Callender’s, Healthy Choice, Slim Jim, Hebrew National, Orville Redenbacher’s, Peter Pan, Reddi-wip, PAM, Snack Pack, Banquet, Chef Boyardee, Egg Beaters, Hunt’s and many other brands found in grocery, convenience, mass merchandise and club stores.
ConAgra also has a strong business-to-business presence, supplying frozen potato and sweet potato products as well as other vegetable, spice and grain products to a variety of well-known restaurants, foodservice operators and commercial customers. ConAgra was founded in 1919 and is headquartered in Omaha, Nebraska.