DuPont divests Natural Colors business to DDW
Selling the business is in line with DuPont’s portfolio management strategy, while DDW says the deal will strengthen its global reach
04 Jul 2019 --- DuPont has divested its Natural Colors business, which is part of the DuPont Nutrition & Biosciences (N&B) segment, to DDW, The Color House. DDW is a global, privately held company specializing in natural color solutions for the food and beverage industry and the acquisition expands its global reach while adding technical and manufacturing capabilities in several core natural colors. Meanwhile, the divestment is part of DuPont’s defined strategy aligning the company’s portfolio with high return opportunities.
“This includes always evaluating the business and asset mix, and, as appropriate, pursuing strategic alternatives to optimize value creation,” Matthias Heinzel, President, DuPont Nutrition & Biosciences business, tells FoodIngredientsFirst.
“The Natural Colors business was not part of DuPont Nutrition & Biosciences’ strategic focus areas and following a strategic review of the Natural Colors business, we concluded that it would likely deliver greater value as part of a dedicated and leading colors player,” he says.
The acquisition offers quality natural colors to a global customer base and came with two world-class production sites.The acquisition offers quality natural colors to a global customer base and came with two world-class production sites. DDW, The Color House is “100 percent focused on natural and caramel colors for the food and beverage industry,” a spokesperson tells FoodIngredientsFirst.
“This acquisition adds two new manufacturing operations, one in the UK and another in Chile,” they said. “We already have operations in Manchester and Bristol, UK, and Cork, Ireland. This widens the current DDW customer base in Europe and adds two unique new products for us – chlorophyll green and carbon black.”
“DDW has a caramel color manufacturing plant in Brazil. The new operation in Chile manufactures natural colors and services customers in the Southern Cone in South America. This along with Chile’s favorable trade agreements will significantly expand our global reach.”
The DDW spokesperson also points out that via the acquisition, the company gains 38 new associates in the UK and 35 in Chile. “We are excited for these associates to join our team. There appears to be a strong cultural fit with our values of working together and focusing on the customer.
By Gaynor Selby
