Cargill to acquire Degussa's Food Ingredients business

Sept. 9, 2005

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 Cargill’s 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 Degussa’s Food Ingredients employees will complement and strengthen that of the existing Cargill organization.

Sponsored Recommendations

Refrigerated transport services you can count on

Ensure product quality from origin to final destination with refrigerated shipping solutions from Schneider.

4 shipping challenges that a dedicated carrier can solve

Navigating the logistics industry is challenging. Find out how a dedicated transportation solution can solve some of the most common shipping challenges.

Dedicated lightweight solution maximizes bottled water payload

A leading bottled water company needed a carrier to transport water from 29 plants to retailers. The challenge? Handling over 46,000 pounds. Read the study.

Recipe for successful growth: Schneider’s dedicated fleet services helps bakery rise

Learn how a large bakery company complimented their private fleet with Schneider Dedicated freight services to increase freight capacity, amplify visibility & reduce costs.