Diehl, a unit of ingredients' manufacturer SensoryEffects, claims the deal will strengthen the company's 'solution-based' products for a wide range of applications, including bakery, beverages and nutritional foods.
"We will continue to focus on delivering value-added functional ingredient technology centered on creaming agents, powdered vegetable shortenings, whip topping and dessert bases, and specialty emulsified powders,” said Jim Holdrieth, general manager at Defiance-based DFI.
Figures behind the deal were not disclosed but in a statement Diehl, whose products include spray-dried creaming agents and whip topping bases, said it had acquired 'certain assets' of the emulsified powder and non-dairy creamer business segment for industrial and retail markets.
"Industrial products include those that impart flavor and whitening of beverage, nutritional and food applications. Retail products include packaged non-dairy creamers used as coffee and tea whiteners," explained the ingredients company.
Economies of scale
Diehl’s consolidation strategy will see it shift industrial non-dairy creamer production from ACH’s Champaign, Illinois, facility to DFI's plant in Defiance, Ohio.
In parallel, the "best strategic direction for the retail business" is still under evaluation. Diehl is, as yet, undecided "whether or not this business segment will remain a part of DFI".
In the meantime, ACH – a subsidiary of Associated British Foods – will continue to assure supply.
Itself owned by St.Louis-based Performance Chemicals & Ingredients company, Diehl Food Ingredients came into the SensoryEffects fold in 2006.
Later that year, lipid-based supplier – SensoryEffects Inclusions – was acquired from fats and lipid company, Loders Croklaan. Last year, PCI acquired the dairy flavor systems business of Givaudan Flavours North America, now called SensoryEffects Flavor Systems.