With the deal expected to be completed by June, Glanbia plans to operate Flavor Producers under its Glanbia Nutritionals and Nutritional Solutions businesses.
Glanbia acquires US flavour business for $300m : Market Prospects
Research from Coherent Market Insights forecasts the global natural and organic flavor market to grow from $7.36 billion in 2022 to $15.1 billion by 2030, a compound annual growth rate of 9.4%.
Flavor Producers, established in 1981 in Valencia, California, reported pre-tax profits of $19.7 million on net sales of $86.1 million in the 12 months leading up to February. The company boasts gross assets worth $321 million.
Financial Position
Glanbia’s balance sheet remains robust, with net debt of $248.7 million at the close of 2023 and a credit facility of $1.3 billion. The company employs over 6,000 staff members and serves customers across 130 countries.
Shares of Glanbia were stable at 16.9 pence ($0.21) on the London Stock Exchange on Monday afternoon.
Glanbia acquires US flavour business for $300m : Future Implications
Glanbia’s ongoing €100 million ($106 million) share buyback program is unaffected by the planned Flavor Producers transaction. The company expects the acquisition to enhance its position in the U.S. market and provide a significant competitive edge.
