Danisco Sells Flavours to Firmenich

Global food ingredients specialist Danisco has entered into an agreement to sell its Flavours business to Firmenich, a flavors and fragrances company.

The value of the transaction has been agreed at DKK3.36 billion. The agreement is subject to approvals by the relevant authorities in a number of countries, and is anticipated to close by the end of June 2007.

At the same time, Danisco and Firmenich are entering into a strategic partnership to focus on growth in bio-ingredients and texturants and sweeteners. This agreement is expected to strengthen the position of both companies in the food industry.

In recent years, Danisco’s business has been boosted by organic growth and several acquisitions. The acquisitions of Rhodia Food Ingredients in 2004 and Genencor in 2005 were major events and significantly strengthened its biotechnology platform.