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Glanbia To Acquire Flavor Producers For Initial Consideration Of $300m

By Sarah O'Sullivan
Glanbia To Acquire Flavor Producers For Initial Consideration Of $300m

Glanbia has entered into an agreement to acquire Flavor Producers LLC for an initial consideration of $300 million, it was announced today.

Flavor Producers – which is owned by the Aroma Holding Company – is a leading flavour platform in the US.

The platform provides flavours and extracts to the food and beverage industries, with a focus on organic and natural ingredients.


Glanbia will operate Flavor Producers within its Glanbia Nutritionals (GN) Nutritional Solutions business (NS).

The transaction is in line with Glanbia’s goal of growing its Better Nutrition platforms by acquiring complementary businesses.


The initial consideration is $300 million, with an additional deferred payment of $55 million, dependent on performance in 2024.

Final consideration will also be impacted by the value of actual working capital and customary completion accounts at closing.

It is expected that the transaction will close in the first half of the 2024 financial year, subject to customary closing conditions and agreed completion accounts.

‘Important Step In Continued Growth’

Speaking about the acquisition, the chief executive of Glanbia, Hugh McGuire, said, “I am delighted to announce the acquisition of Flavor Producers, which represents an important step in the continued growth of our Nutritional Solutions business.

“This acquisition builds on our existing flavours capability and positions us well to capture long-term growth opportunities in the organic and natural flavours segments.


“M&A is an important part of our growth strategy, and this transaction represents a further opportunity to scale our NS business, unlock synergies, and acquire unique and complementary capabilities.”

Glanbia’s current €100 million buy-back programme, announced on 28 February, is ongoing and unaffected by this transaction.

The transaction is expected to be marginally accretive to Glanbia’s adjusted earnings per share in its first full year of ownership.

Read More: Glanbia Reports Strong 2023 Performance Despite Revenue Dip

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