Degussa AG of Dusseldorf, Germany, announced September 9 it has agreed to sell its food ingredients operations to Cargill (Minneapolis) for 540 million Euro ($670 million U.S.). The transaction is still contingent on the approval of the Degussa Supervisory Board and the relevant regulatory authorities.
Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht remarked: "Food Ingredients are a strategically ideal fit for a strong global food industry player such as Cargill. We feel that we have placed these operations in good hands, and are very satisfied with the transaction as a whole."
This agreement marks a very significant step in Cargills strategy of becoming a leading provider of specialty ingredients and ingredient systems to food and beverage companies globally, said Warren Staley, Cargill chairman and chief executive officer. This will be our largest acquisition since Cerestar in 2002, and greatly strengthens our range of texturant systems and flavoring capabilities. It supports our strategy of becoming the recognized global leader in providing food and beverage companies with innovative solutions that help them succeed.
Degussa's Food Ingredients Business Unit consists of the Texturant Systems and Flavors Business Lines. Texturant Systems is comprised of product groups in the areas of hydrocolloids, blends, lecithin, cultures and bioactive ingredients. The Flavors Business Line produces flavoring solutions for the beverage, dairy, confectionary and other food sectors and provides key capabilities in formulation, application, analytical chemistry and sensory analysis. The expertise of Degussas Food Ingredients employees will complement and strengthen that of the existing Cargill organization.