Sensient Technologies Acquires GlobeNatural

Sensient Technologies has reached a definitive agreement to acquire the natural color business of GlobeNatural, a leading natural food and ingredient company based in Lima, Peru, owned by the Michell Group.

The transaction is expected to close in the first quarter of 2018. The new entity will operate as Sensient Natural Colors Peru S.A.C.

GlobeNatural brings more than 25 years of experience in the sourcing, manufacturing, and exporting of natural food ingredients. The natural colors are used in a wide range of food and beverage applications in every region of the world.

“This acquisition is an important component of our ‘seed to shelf’ initiative in food colors. Of food products launched globally, 80% use natural colors and coloring foodstuffs, and we anticipate that this market will continue to grow. We will continue to innovate and expand our natural color supply chain portfolio,” commented Paul Manning, chairman and CEO of Sensient Technologies.

Sensient Technologies Corporation reported revenue of USD328.9m in this year’s fourth quarter compared to USD330.2m in the comparable period last year. Operating income was USD47.4m in the fourth quarter of 2017 and USD43.3m in last year’s fourth quarter. Foreign currency translation increased revenue by approximately 3%, operating income by approximately 2% and earnings per share by approximately 1% in the fourth quarter.

The Color Group reported revenues of USD126.2m in the quarter and USD119.7m in last year’s fourth quarter, an increase of 5.4%. For the full year, the Color Group reported revenues of USD526.4m, an increase of 4.4% from USD504.1m reported in the comparable period last year.

The Flavors & Fragrances Group reported fourth quarter revenues of USD178.5m compared to USD187.1m reported in the comparable period last year.