Ornua acquires US dairy ingredients business CoreFX
The acquisition, in partnership with Denis Neville, formerly of MCT Dairies, is Ornua’s first specialty dry ingredients production facility in the US.
Neville becomes the newly-named CoreFX Ingredients LLC CEO.
CoreFX Ingredients complements Ornua’s existing ingredients production facilities in Saudi Arabia, Spain, the UK and the US, delivering scale and shared dairy technologies.
Ingredient solutions
CoreFX Ingredients uses spray drying and dry blending technologies to produce a range of dairy, cheese and lipid powder ingredient solutions for US food manufacturing and foodservice customers.
It serves a range of markets including snack foods, sports nutrition, soups/sauces and dressings, infant and toddler nutrition, desserts, bakery and dairy.
Plans for growth
Ornua plans to further increase the scale and capability of the CoreFX Ingredients business and is investing in the development of the production facility’s technical capabilities and in a Customer Innovation Centre at its Chicago headquarters.
Neville said the investment gives CoreFX Ingredients the opportunity to grow through the addition of technologies, infrastructure and people.
“The support of an international dairy company of Ornua’s reputation and track record will help enormously with our growth plans,” Neville said.
No job losses
An Ornua spokesperson told DairyReporter that the deal cost in the region of $5m, and that there would be no job losses resulting from the acquisition.
"The acquisition of CoreFX further reinforces Ornua's presence in the important US market. It is fully in line with Ornua's strategic objective of developing a broad based, global, value added dairy business that helps deliver sustainable returns to Irish dairy farmers,” the spokesperson said.
“CoreFX has a strong position in the US dairy ingredients market, a valuable customer base and innovative technology that can be harnessed in our other ingredients businesses located in a range of key international markets."
