Views Article – Sharenet Wealth

Europe, News

Denmark’s Chr Hansen to sell food colouring unit to Sweden’s EQT

Sept 26 (Reuters) – Danish ingredients maker Chr Hansen Holding A/S said on Saturday it would sell its food colouring business to Swedish private equity firm EQT for 800 million euros ($930.40 million).

The Danish company makes probiotic products that support the immune system and has enjoyed a boost in sales as the pandemic forces consumers to opt for prepared food products.

Chr Hansen, whose customers include the world’s largest food manufacturers such as Nestle and Danone, said in July it would explore options for its natural colours unit, which does not use its core fermentation technology.

The company, which sells enzymes and bacteria used in products like dairy, dietary supplements and wine, said that month it had seen rising demand for probiotics, live bacteria used in yoghurt and dietary supplements.

The deal, which will be cash based and debt free, is expected to close during the spring of 2021.

The company said its long-term financial forecast is unaffected by the divestment.

($1 = 0.8598 euros) (Reporting by Rama Venkat in Bengaluru; Editing by Sam Holmes)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.