Glanbia announced an agreement to acquire Flavor Producers LLC, for an initial consideration of USD 300 million. Flavor Producers is a US flavor platform, providing flavors and extracts to the food and beverage industries, with a focus on organic and natural ingredients. Glanbia will operate Flavor Producers within its Glanbia Nutritionals, Nutritional Solutions business. The transaction is anticipated to close in the first half of FY 2024, subject to customary closing conditions.

Flavor Producers is an established platform with a background of over 40 years and an extensive flavor library, including clean-label solutions.

Commenting on the transaction, Hugh McGuire, Glanbia CEO, said: “I am delighted to announce the acquisition of Flavor Producers, which represents an important step in the continued growth of our Nutritional Solutions business. This acquisition builds on our existing flavors capability and positions us well to capture long-term growth opportunities in the organic and natural flavors segments. M&A is an important part of our growth strategy and this transaction represents a further opportunity to scale our NS business, unlock synergies and acquire unique and complementary capabilities.”

Glanbia’s current EUR 100 million buyback program announced on February 28, 2024, is ongoing and is unaffected by this transaction, the company detailed.

Flavor Producers was founded in 1981 as a family business in Valencia, California. They specialize in the development of natural and organic flavors by sourcing raw materials from nature. To create extracts and plant-based flavors. In the financial year ending in February 2024, Flavor Producers delivered USD 86.1 million in net sales. Its gross assets were valued at USD 321 million.

Photo: Flavor Producers