Irish multinational Glanbia PLC is making strategic moves into the U.S. market with its agreement to purchase Flavor Producers LLC, a California-based natural flavor manufacturer, for an initial $300 million. The acquisition is aimed at capitalizing on the growing demand for organic and natural tastes, especially in the sports nutrition sector.
Glanbia acquires US flavour business for $300m : Glanbia’s Ambitious Plans
Glanbia CEO Hugh McGuire described the deal as a pivotal moment in the company’s expansion into the nutrition industry. In a statement, McGuire emphasized the opportunities the acquisition presents, citing long-term growth potential in the organic and natural flavor market.
“This acquisition positions us to capture significant growth opportunities in the organic and natural flavors segments and allows us to scale our business, unlock synergies, and enhance our capabilities,” said McGuire.
Transaction Details
The acquisition requires approval from an undisclosed U.S. regulator but does not need consent from shareholders. Glanbia will finance the purchase through a mix of cash and banking facilities. The company may also pay an additional $55 million to Aroma Holding Company LLC, Flavor Producers’ owners, if the latter meets specific performance targets in 2024.
