ISP expands food stabiliser business in UK deal
and consolidates its food stabiliser portfolio, acquiring the
technology and customers of UK business Creative Food Systems
(CFS), reports Lindsey Partos.
The bolt-on deal brings CFS' stabilising functional systems, that predominantly focus on the growing fermented dairy sectors, as well as chilled and ready meals, and soups and sauces, into ISP's food ingredients unit.
ISP already sells a range of similar products, but "the deal gives us a better foothold in these markets," an ISP spokesperson tells FoodNavigator.com.
The value of the business is in the blended systems and the technology, he adds.
Key to the CFS deal is the stabiliser technology plus the firm's roll call of clients. Production will head to Scotland.
"The products will be manufactured at our facility in Girvan, Scotland," adds the spokesperson.
The Scottish business is currently the world's largest alginate production facility.
CFS clients largely covered the European market, but ISP claims it will use the group's expansive sales network to expand the technology behind the functional systems further afield.
"ISP continues to grow its Food Ingredients business through a combination of developing customer-focused products and application developments, whilst targeting acquisitions that compliment our existing product portfolio and bring additional technical competencies to our group," comments Alan Jones, global general manager Food Ingredients at ISP.
Last month the firm shut down alginate activities at its San Diego plant, shifting production to Scotland as costs bite hard.
The company told the plant's 135 employees that operations will move to Girvan, Scotland early next year. After 76 years in operation, the San Diego plant represented the country's largest kelp harvesting facility.
Alginates, gums used extensively by the food industry to thicken, gel and bind products such as ice cream and desserts, are derived from alginic acid obtained from brown seaweed (kelp).
In addition to food ingredients, US-headquartered ISP supplies specialty chemicals for a range of industries including personal care and pharmaceuticals.
