· 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
Headquartered in Hørsholm,
Natural Colors' products are made from all-natural fruit and vegetable concentrates from sweet potatoes, grape skin, spirulina, carrots and beetroots. The products are primarily used within F&B applications where the conversion from artificial to natural colorants is highest, such as dairy- and fruit preparations, confectionary, ice cream, prepared foods and beverages.
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 components to natural ingredients, and a growing demand for sustainable and plant-based food. The Company's solutions contribute to society and support several of the United Nations Sustainable Development Goals, including SDG 12 (Responsible Consumption and Production): via R&D into higher crop yields, use of renewable resources such as grape skin. SDG 13 (Climate Action): via a `Go Green' project to make energy and CO2 improvements, using science-based targets.
EQT intends to build on the existing strategy of continued organic growth in current markets with a focus on the US and
The transaction is subject to customary conditions and regulatory approvals. It is expected to close in H1 2021.
Goldman Sachs acted as exclusive financial advisor, Gorrissen Federspiel as legal advisor,
With this transaction, EQT IX is expected to be 15-20 percent invested, based on its target fund size.
Contact
Camilla Lercke, Head of Media Relations, Chr. Hansen, +45 5339 2384
EQT Press Office, press@eqtpartners.com
About Chr. Hansen
Chr. Hansen is a leading, global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. We develop and produce cultures, enzymes, probiotics and natural colors for a rich variety of foods, confectionery, beverages, dietary supplements and even animal feed and plant protection. Our product innovation is based on around 40,000 microbial strains - we like to refer to them as `good bacteria'. Our solutions enable food manufacturers to produce more with less - while also reducing the use of chemicals and other synthetic additives - which make our products highly relevant in today's world. Sustainability is an integral part of Chr. Hansen's vision to improve food and health. In 2019 Chr. Hansen was ranked as the world's most sustainable company by Corporate Knights thanks to our strong sustainability efforts and our many collaborative partnerships with our customers. We have been delivering value to our partners - and, ultimately, end consumers worldwide - for over 140 years. We are proud that more than one billion people consume products containing our natural ingredients every day.
More info: www.chr-hansen.com/en
About EQT
EQT is a differentiated global investment organization with more than
More info: www.eqtgroup.com
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