21 June 2007 - Today Chr. Hansen announced the sale of its paprika business activities, which includes paprika and spice oleoresin, rosemary extract, paprika powder, turmeric, bixin and chlorophyll products. The sale also includes the production facilities in Spain and India.
"Within the color area, our core competence is to develop and supply technically advanced natural color pigments and compounds for the Food & Beverage industry. Hence we have deliberately been consolidating and outsourcing a significant part of our basic extraction activities during the last two years in order to shift resources from these activities to more value adding activities for our customers, e.g. the establishment of state-of-the-art Industry Technology Centres and Regional Blending sites”, says Lars Frederiksen, CEO.
Changes in India and Spain
In India, the activities has been taken over by A&P Group which for more than ten years has been partner and co-owner of the paprika company in Akay. For more than 10 years, Chr. Hansen and A&P Group have successfully developed the global paprika and spice oleoresin business to the extent that Akay is now among the leading producers of spice oleoresins in the world. Due to change in the global market place combined with Chr. Hansen’s increased focus on its core business, the partners have mutually decided that it will be beneficial for the growth of Akay that the company continued as an independent business. The management team in Akay continues unchanged and it has a long experience and solid commercial, technical and financial background to continue all present business activities.
The Spanish part of the Paprika Business has been divested to site management through a MBO. The team has a long experience and solid commercial, technical and financial background to continue its business activities. A new company called Ingredientes Naturales Seleccionados S.L.( INGRANET ) has been established by the Spanish Team, and they will keep the position achieved as centre of excellence for extracting natural products for the Food Industry.
Both in India and Spain, Chr. Hansen and the new owners have established sourcing partnerships on selected color pigments and Chr. Hansen has been appointed distributor for a number of markets and products. Based on those agreements Chr. Hansen will be able to continue to supply its customers in the future.
The sales price for the above mentioned transactions is not disclosed.