Chr. Hansen to sell its Natural Colors business to EQT
STOCKHOLM, Sept. 26, 2020 /PRNewswire/ --
- Chr. Hansen to sell its Natural Colors business, the leading global developer and manufacturer of natural coloring ingredients for food and beverages, to EQT IX
- Natural Colors' underlying market is supported by favorable secular megatrends, such as increasing consumer awareness around health and the environment, the ongoing transition from synthetic coloring components to natural ingredients, and a growing demand for sustainable and plant-based food
- EQT plans to invest significantly in Natural Colors' organization and strengthen its digital infrastructure, sustainability capabilities and supply chain setup. EQT will support organic growth in Natural Colors' existing markets and acquisitive expansion in the highly fragmented food coloring market
- Natural Colors is expected to leverage on EQT's inhouse expertise within digitalization and sustainability, and EQT's global advisory network, which possesses significant experience from developing strong ingredient companies
Chr. Hansen Holding A/S ("Chr. Hansen") and the EQT IX fund today announced that EQT has agreed to acquire the Natural Colors Division ("Natural Colors" or "the Company"), a subsidiary of Chr. Hansen, the global bioscience leader and developer of natural solutions for the food, nutritional, pharmaceutical and agricultural industries. The purchase price amounts to EUR 800 million.
Headquartered in Hørsholm, Denmark, Natural Colors is the leading developer and manufacturer of natural coloring ingredients, serving over 1,600 customers in the food and beverages (F&B) industry. The Company is the global leader in the natural colorants industry in terms of innovation, application, formulation, product portfolio breadth and geographical reach. The Natural Colors Division employs approximately 650 people and has grown organically by around 9 percent per annum during the past five years up to 2018/19. The Company generated sales of EUR 224 million in 2018/19.