Givaudan to acquire Spicetec Flavors & Seasonings

IN A MOVE to strengthen its integrated solutions, Givaudan has announced its plans to acquire the Spicetec Flavors & Seasonings business of ConAgra Foods. This is subject to formal approvals from antitrust authorities. 

Spicetec offers a range of flavors, spices and savory seasoning solutions to customers mainly in North America, and operates from Omaha, Nebraska; Carol Stream, Illinois and Cranbury, New Jersey, with a total workforce of 280. The transaction is expected to add USD185 million to Givaudan’s revenue on a full year basis. 

Givaudan will purchase the company for USD340 million which it plans to fund from existing resources.The amounts paid will include tax benefits, and final cash consideration will be subject to adjustments for working capital. The transaction is expected to close in the next 60-90 days. 

Gilles Andrier, CEO of Givaudan says, “Spicetec brings complementary capabilities to Givaudan with its strong portfolio of spices, seasoning blends and natural solutions. We are delighted to welcome Spicetec’s employees to Givaudan; our high cultural fit will contribute greatly to a successful integration.”

Mauricio Graber, President of Givaudan’s Flavor Division said: “Combining Givaudan’s leading flavor expertise with Spicetec’s portfolio of products will enable us to deliver a broader range of solutions to our customers in processed meats, savory retail and foodservice. Furthermore, these additional capabilities will help us strengthen the breadth of our industry leading natural ingredients, flavor and taste solutions.” 

Sean Connolly, president and chief executive officer of ConAgra Foods, says, “We are committed to becoming a more focused and higher performing company in order to drive greater shareholder value. 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.” He added, “We truly appreciate the contributions of the Spicetec employees and look forward to having an ongoing relationship with them as a key supplier to ConAgra Foods.”