Glanbia acquires California flavouring firm for €281m

Glanbia's current €100m buyback programme announced in February is ongoing and unaffected by this transaction.

Food giant Glanbia is to acquire a US flavouring business for $300m (€281.6m).

The Kilkenny-headquartered firm has entered an agreement with the shareholders of Aroma Holding Company, the owners of Flavor Producers to acquire the business.

A family business in California, Flavor Producers, provides flavours and extracts to the food and beverage industries, with a focus on organic and natural ingredients. Glanbia will operate the company within its Nutritional Solutions business.

The initial consideration is $300m with an additional deferred payment of up to $55m, conditional on performance in 2024. Glanbia will finance the deal through existing banking facilities and cash. Glanbia has a balance sheet with net debt of $248.7m (€233.4m) at the end of 2023.

The company’s current €100m buyback programme announced in February is ongoing and unaffected by this transaction.

Hugh McGuire, Chief Executive Officer of Glanbia said the acquisition is an important step in the growth of its 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," he said.