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Symrise receives antitrust clearance on US$900m ADF/IDF acquisition
Symrise has received antitrust clearance from the US Department of Justice concerning the acquisition of ADF/IDF (American Dehydrated Foods/International Dehydrated Foods), a US meat and egg-based protein specialist and pioneer in all-natural nutrition ingredients. As a condition to this clearance, Symrise has agreed to divest its manufacturing facility in Banks, Georgia (US). This development has been described as a “milestone” by Symrise which expects to close the ADF/IDF transaction “in a timely manner.”
“With the acquisition, we want to broaden our activities in the fast-growing pet food business and to expand our position in the attractive food nutrition market," Symrise spokesperson Bernhard Kott tells FoodIngredientsFirst.
"The strategic acquisition of ADF/IDF perfectly delivers on our strategy to expand in fast-growing, high-margin business areas. The complementary offering will further diversify our Diana portfolio in pet food and nutrition,” he adds.
Symrise has signed an agreement regarding the sale of the Banks facility and related business. This will not impact the strategic rationale of the ADF/IDF acquisition, the company notes.
“The acquisition of the leading provider of natural pet food nutrition ingredients is a further breakthrough for Symrise into the pet food nutrition market. With our expertise in pet food palatability and competence in nutrition solutions, we will create an integrated partner for our pet food clients,” continues Kott.
“Through this acquisition, we will also broaden our global presence, especially in the US – a strategically important growth market for us – and strengthen our customer base,” he says.
With its comprehensive portfolio of all-natural ingredients for food and pet food markets, ADF/IDF will complement the Nutrition portfolio of Symrise and contribute to a highly diversified range of natural ingredients based solutions.
Symrise made a first foray into pet food ingredients with the acquisition of France’s Diana Group for US$1.8 billion in 2014. Since then, there have been several major acquisitions by fellow flavor behemoths, most notably Givaudan acquiring Naturex and IFF buying Frutarom during a healthy 2018. This latest move shows how major flavor players look beyond their base to target the more holistic concept of taste.
The closing of the ADF/IDF is expected within the next few weeks. Symrise initially announced the acquisition of ADF/IDF, which was valued at US$900 million, on January 31, 2019. The transaction has been financed through a combination of debt and equity.
“We hope to complete the ADF/IDF acquisition and integration fast and smooth so as to drive our development in natural protein solutions,” Kott concludes.
ADF/IDF was founded in 1978 and is a specialized producer of sustainable meat and egg-based nutrition ingredients.
Headquartered in Springfield, Missouri (US), the company partners with clients in the pet food, food and nutrition industries, offering a range of natural and clean label product solutions. In pet food applications, the company has become a natural ingredient provider, offering taste and nutrition solutions as well as functional ingredients.
The combination of ADF/IDF and Symrise will furthermore result in an “enhanced customer platform and strengthened international footprint.” Symrise plans to reinforce partnerships with key multinational players as well as fast-growing regional brands in the US, one of its key growth markets.
In return, ADF/IDF will benefit from Symrise’s resources and expertise outside the US market. The acquisition also offers cross-selling potential to accelerate long-term profitable growth, especially in the attractive application area of pet food, Symrise has previously noted.