Chr. Hansen Sells Specialty Sweetener Division to American Sugar Refinery
The transaction includes the specialty sweetener product line of molasses, malt, rice syrup, oat extract, honey, and invert and fondant sugar, as well as production facilities in Louisiana and Illinois.
15/06/06 Chr. Hansen and American Sugar Refining have announced the sale of Chr. Hansen's Specialty Sweetener Division to American Sugar Refining. The transaction includes the specialty sweetener product line of molasses, malt, rice syrup, oat extract, honey, and invert and fondant sugar, as well as production facilities in Louisiana and Illinois. The sale price was not disclosed.
Shortly after the private equity PAI Partners acquired Chr. Hansen last year, it was decided to divest the sweetener activities of the company.
"As we reviewed our business strategies with a determined focus on growth, we realized that sweeteners are not within our core product areas," mentioned David R. Carpenter, President and CEO of Chr. Hansen in North America.
"Thus, we decided to divest Sweeteners, and further strengthen our expertise in developing and supplying cultures, dairy enzymes, natural colors, and flavors."
American Sugar Refining, Inc., based in Yonkers, New York, is the largest cane sugar refiner in the United States. Its products are marketed by Domino Foods, Inc., which offers a full line of sugar products under the Domino®, C&H® and Florida Crystals® brands.
Brian O'Malley, Domino's President and Chief Executive Officer, said "the acquisition adds to Domino's offering of specialty sweetener products, which includes natural and organic sugars and rice syrups, molasses, and fondant, icing and brown sugars. We intend to continue to grow the specialty ingredient business through the development of new and unique products that meet our customers' needs for specialty sweeteners."
The sweeteners business was acquired in 1998 as a part of the acquisition of ITC in North America and the sweeteners activities has for all practical reasons been concentrated on that market. The approximately 35 employees directly involved in the sweeteners business will continue to support the current activities.
