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As reported by Perfumer & Flavorist magazine in mid-July, Kerry has confirmed it has entered into an agreement to acquire the global flavors business of Cargill. With its annual revenues representing approximately $200 million, Cargill Flavor Systems will be sold for a considered price of $230 million, subject to closing adjustments. Subject to regulatory approval, the transaction is expected to be completed by year-end.
Through the acquisition, Kerry, which also recently acquired the German flavor company SuCrest, aims to target emerging and end-use markets with new food and beverage products it will obtain from Cargill, as well as provide a more integrated solutions approach for its customers. Cargill Flavor Systems has well-established international flavor technology development expertise that serves customers globally with flavor ingredients and flavor systems for beverage, dairy, sweet and savory applications. The business has long-standing relationships with other global food and beverage manufacturers and employs 700 people through its development and application centers in France, the UK, South Africa, India, Malaysia, China, the US, Puerto Rico, Mexico and Brazil, which is in turn supported by a network of sales representative offices in 12 other countries around the world.