CSM Ingredients’ acquisition of Hi-Food bolstered by natural ingredients factory
21 Feb 2022 --- Italian researcher and ingredients producer, CSM Ingredients has acquired Hi-Food, a specialist in the development and production of natural origin ingredients, under the investment companies of Investindustrial.
“The acquisition of Hi-Food is the first milestone of our ongoing R&D worldwide effort that, in the medium term, will exceed €200 million (US$227 million) in investments,” says Aldo Uva, CEO of CSM Ingredients.
The acquisition builds on Investindustrial’s strategy to build sustainable companies in the food sector. The transaction stipulates that the shareholders of Hi-Food, based in Parma, Italy, will reinvest their proceeds into CSM Ingredients and take on essential roles in R&D and commercial management.
Investindustrial has made eight platform investments in these sectors in the last five years, investing €1.5 billion (US$1.7 billion) of equity. Those companies have, in turn, made another 11 add-on acquisitions.
Natural origin ingredients factory underway
In the next few months, Hi-Food will complete the construction of an advanced factory to produce and process natural, plant-based ingredients that are free of allergens and synthetic additives.
The main focus of Investindustrial is food production, ingredients, nutritional supplements and packaging.
The production plant in Pilastro di Langhirano will be equipped with a permanent extrusion research center. It will feature a collaborative group of pilot structures, experimental kitchens and industrial machines for developing product prototypes.
The plant will serve as an additional asset to the company’s existing three research and innovation centers, eight production plants and two open-innovation hubs.
“Investindustrial has taken a long-term interest in the evolution of the sectors surrounding food sustainability, such as food production, ingredients, nutritional supplements, packaging and closures,” says Andrea Bonomi, chairman of Investindustrial’s industrial advisory board.
R&D capacities at the core
Hi-Food’s R&D complements the industrial platform Investindustrial built in the ingredients sector with the acquisition of CSM Ingredients in April 2021.
“The acquisition allows us to create a perfect blend between the operational solidity, the global footprint and the professional know-how of CSM Ingredients with the pioneering spirit of Hi-Food, helping to accelerate the propulsive reality for the future of food,” Uva explains.
Giampaolo Cagnin, founder of Hi-Food, will join the advisory board of CSM Ingredients.
By Inga de Jong
