Degussa sells Fruit Systems Business
The sale comes as a result of limited market and cost synergies between the Fruit Systems business segment and the other Food Ingredients activities.
22/02/05 Degussa AG has sold its Fruit Systems business to Speyside Equity LLC, a Delaware (DE) private equity company. The new business will operate under the name of Sweet Ovations LLC and be headquartered in Philadelphia. It is expected to retain existing management and to continue to focus on the US market.
Hannelore Gantzer at Degussa told FoodIngredientsFirst that the sale came as a result of limited market and cost synergies between the Fruit Systems business segment and the other Food Ingredients activities. Degussa determined that the best alternative for the business and its employees is to divest Fruit Systems in advance of the planned sale of the Food Ingredients Business Unit. She would not reveal the price of the takeover.
Degussa Fruit Systems has about 200 employees at US-sites in Philadelphia (PA) and Gardena (CA) and is one of the largest providers of fruit and non-fruit sweet preparations to the food industry, e.g. for yogurts, ice cream and bakery products as well as caramel, syrups and smoothie bases for the food service industry. Sales in 2004 were 64 million euros.
