Danisco closes Rhodia acquisition

Related tags Danisco Food European union

The acquisition of Rhodia Food Ingredients by Danisco has finally
been completed today, bringing the Danish ingredients group one
step closer towards its goal of becoming a leading supplier of
ingredients to the food industry. The integration process will now
begin.

Danisco paid DK2.4 billion (€320m) for the division of French speciality chemicals group Rhodia, a takeover which will strengthen the company's position in the European market for cultures and hydrocolloids in particular. Indeed, Danisco leapfrogged Chr.Hansen to become the number one supplier of cultures to the European market as a result of the deal.

But the acquisition will also extend Danisco's business into other markets as well.

"Rhodia's high-profile products will be able to leverage Danisco's strong global sales network,"​ the company said in a statement. "The acquisition substantially enhances Danisco's product palette within speciality products and texturant products."

In the market for cultures, Rhodia supplies products with technological benefits in terms of taste and texture, just as Rhodia is a world-leading producer of probiotic products. Danisco will be taking over production in several countries, which will provide for production plant efficiencies.

The purchase price includes expected cost synergies of approximately DK120 million, the company said, adding that the synergies were expected to have full effect in the third financial year after the acquisition.

The cultures business of Rhodia Food Ingredients will be integrated into the Danisco group through the creation of a new unit, Danisco Cultures, which will be headed by Fabienne Saadane-Oaks. Other Rhodia activities will be integrated into the Specialities, Textural Ingredients and Functional Systems divisions.

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