May 27, 2011

Chr. Hansen sells majority of its functional blends business

Press Release

Chr. Hansen has entered into a definite agreement to sell the majority of its functional blends activities including a production plant in Italy to Frutarom Industries Ltd. at a total consideration of EUR25 million (US$36 million).

The transaction, which remains subject to normal closing conditions, is expected to be completed in the fourth quarter of the financial year 2010/11.

"Our decision to sell these activities is in line with Chr. Hansen's overall strategy to continuously optimise our business portfolio and to focus on and invest in areas where we already have - or can grow into - leading positions. By reducing complexity, the divesture will enable us to focus even more on building a strong global platform in the meat ingredients business with dedicated focus on meat cultures and natural colours." explains Carsten Hellmann, Executive Vice President, Global Sales, Chr. Hansen.

The transaction is not expected to have a significant impact on the result for the year.

The transaction includes 45 employees from Parma and other parts of Chr. Hansen's European organisation.

Ranked among the ten leading companies in the field of flavours, Frutarom Industries Ltd. is a global flavours and fine ingredients company demonstrating strong growth within functional blends.

Turnover for the divested functional blends activities accounted for EUR19 million (US$27 million) in the financial year 2009/10. Functional blends are ingredient blends used by meat producers in the production of sausages and cooked ham.