Symrise to Acquire Chr. Hansen Flavor Activities

05/03/08 Chr. Hansen has announced the signing of an agreement whereby Symrise acquires a part of Chr. Hansen’s Flavor Division. The activities to be divested are the seasonings (spice blends), savory, sweet and dairy flavor businesses, which are primarily located in North America.

Chr. Hansen flavor customers will benefit from the global infrastructure and technical expertise Symrise offers as one of the leading global flavor companies. Chr. Hansen management stated that they are very pleased with the planned transaction because with its capabilities, Symrise will be able to better leverage the growth potential of the Chr. Hansen flavour portfolio.

“The divestment of these business areas is an important step in the last couple of year’s strategic change of focus for Chr. Hansen. It is a move towards a stronger biotechnological profile with a focus on more complex, innovative and value adding solutions based on our strong knowledge and position within the fields of lactic acid bacteria, enzymes and natural colours” explains Lars Frederiksen, CEO.

In the financial year 2006-07 Chr. Hansen had a total turnover of EUR 500 millions. The divested flavor business was approximately EUR 50 million, with North America as the largest market.

“Over the past years, Chr. Hansen has gone through a successful strategic re-focus and streamlining. We have divested less profitable business areas like sweeteners, paprika and excipients while at the same time acquiring Medipharm, which specialises in biotechnological solutions for the agricultural industry. This spring we will open the world’s largest dairy culture plant, so I am satisfied with the development at Chr. Hansen,” Lars Frederiksen says.

The final closing of the flavor sale awaits approval from the anti-trust authorities. The sales price has not been disclosed. Credit Suisse advised Chr. Hansen on this transaction.