Diehl acquires ACH in emulsifier deal

By Lindsay Partos

- Last updated on GMT

Ohio's Diehl Food Ingredients (DFI) has expanded its emulsifier portfolio by acquiring the emulsified powders and non-dairy creamer business from Tennessee-based ACH Food Companies.

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.

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