EQT Acquires Chr. Hansen’s Natural Colours Business For EUR 800M

Thursday, October 1st, 2020 | 491 Views


Chr. Hansen Holding A/S (“Chr. Hansen”) and the EQT IX fund has announced that EQT has agreed to acquire the Natural Colours Division (“Natural Colours” or “the Company”), a subsidiary of Chr. Hansen, the global bioscience leader and developer of natural solutions for the food, nutritional, pharmaceutical and agricultural industries. The purchase price amounts to EUR 800 million.

Headquartered in Hørsholm, Denmark, Natural Colours is the leading developer and manufacturer of natural colouring ingredients, serving over 1,600 customers in the food and beverages (F&B) industry. Natural Colours’ 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 Colours’ underlying market is supported by favourable 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 Asia. The company will also support acquisitive expansion within the highly fragmented foods colouring market by utilising the Natural Colours platform for industry consolidation. It also plans to invest significantly in the Company’s organisation and strengthen its digital infrastructure, sustainability capabilities and supply chain setup. Natural Colours is expected to leverage on EQT’s inhouse expertise within digitalisation and sustainability, and EQT’s global advisory network, which possesses significant experience from developing strong ingredient companies.

 

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