Tate & Lyle to acquire German food ingredients group
April 17, 2007
by Eric Schroeder
LONDON — Tate & Lyle P.L.C. has signed an agreement to acquire an 80% interest in G.C. Hahn & Co., a German specialty food ingredients group known for its dairy stabilizer systems. As part of the transaction, which is expected to be completed by May 31, Tate & Lyle has agreed to pay £79 million ($158.5 million).
The agreement also includes options that will allow for Tate & Lyle to acquire the remaining 20% stake in the company in due course.
"The combination of Hahn with Tate & Lyle’s existing products, systems and applications skills will provide our customers with a comprehensive texturant offering with particular expertise in the dairy and convenience food sectors," said Iain Ferguson, chief executive officer, Tate & Lyle. "This investment complements our existing teams, in particular at Cesalpinia Food and Tate & Lyle Custom Ingredients, and will strengthen our European marketing presence, opening new opportunities for developing our Splenda Sucralose business."
Founded in 1848, Hahn’s headquarters are located in Lubeck, Germany. The company has production operations in the United States, United Kingdoma and Australia, and sales offices in 22 countries. In the year ended Dec. 31, 2006, Hahn had sales of €102 million and profit before interest, tax, exceptional items and amortization of €10 million.