Kerry and Danisco to battle it out for Chr. Hansen and Degussa
Speculation is running rampant as ingredients giants Danisco and Kerry battle it out for dominance. Both are expected to be on the short-list of bidders for Chr. Hansen this February.
Early last week there was speculation over whether or not the Kerry Group was lining up a 700 million euro deal to take over Degussa’s ingredients’ business, should a circa 1 billion offer for Chr. Hansen be unsuccessful.
Kerry spokesman Frank Hayes would not comment on the reports of a Chr. Hansen or Degussa move. When asked by FoodIngredientsFirst he referred to discussions as “absolute media speculation”.
Kerry spent 600 million euro on acquisitions in 2004, including a $440 million deal on Quest Ingredients. The company announced a €20 million foray into China earlier in January, which includes the acquisition of food company Lanli and the development of a plant at a 16-acre greenfield site.
“With changing consumer trends and nutrition requirements, particularly in major population centres of the vast Chinese market, this region will be a major focus for the Group and its food manufacturing and foodservice customers in the decade ahead,” Kerry CEO Hugh Friel concluded at the time. “Kerry’s food ingredients and flavour technologies will be focused on the significant growth opportunities in China in the food processing and foodservice sectors,” he said, “Particularly in nutritional, dairy, flavoured noodle, brewing, flavoured beverage, snack and bakery market segments”.
The Quest acquisition occurred at the same time that Danisco took over Rhodia Food Ingredients in a 320 million euro deal. Last week Danisco acquired enzyme company Genencor International in a US$419 million deal by buying out all of Eastman Chemical Company’s common and preferred shares.
A period of high consolidation looks on the cards fostering even more speculation over acquisitions and mergers. Will we see Kerry or Danisco make any more moves to dominate the market?
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