ConAgra Foods, Inc., Omaha, Neb., announced on May 23 it has entered into a definitive agreement to sell its Spicetec Flavors & Seasonings business to Givaudan for approximately $340 million.
"We are committed to becoming a more focused and higher performing company in order to drive greater shareholder value," stated Sean Connolly, president and CEO of ConAgra Foods. "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. 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."
Givaudan, Cincinnati, a global fragrance and flavor producer that provides products to global, regional and local food, beverage, consumer goods companies in North America, says the move was part of its 2020 strategy to strengthen its capabilities in integrated solutions.
Gilles Andrier, CEO of Givaudan noted, "This acquisition fits with our 2020 strategy to expand our offering to deliver integrated solutions where flavor and taste play a key role. 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."
Spicetec offers a range of flavors, spices and savory seasoning solutions to customers, primarily in North America and operates from locations in Omaha, Neb., Carol Stream, Ill. and Cranbury, N.J., employing 280 people. The transaction is expected to add approximately $185 million to Givaudan’s revenue on a full-year basis.
The deal includes the transition of roughly 280 employees as well as facilities in Cranbury, N.J., and Carol Stream, Ill. The transaction, which is subject to customary closing conditions and regulatory clearances, is expected to close in about 60-90 days, the companies report.