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Givaudan acquires Centroflora Nutra to boost natural extracts offering

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© Getty Images / Artfully79
© Getty Images / Artfully79
Global flavor and fragrance giant Givaudan is acquiring the Nutrition Division of Centroflora Group to expand its presence in Brazil and to strengthen its global offering of natural extracts.

Centroflora Nutra manufactures botanical extracts and dehydrated fruits for the food, beverage and consumer goods sectors. While it offers a wide variety of plant extracts from across the globe it has a particular focus on those from Brazil.

“The acquisition of Centroflora’s Nutrition Division fits well with our 2020 strategy to expand our offering in naturals and is aligned with our sustainability goals,” ​said Gilles Andrier, CEO of Givaudan. “It offers a unique opportunity to strengthen our naturals sourcing platform for Givaudan’s flavors, fragrances and cosmetics businesses.

“Centroflora’s comprehensive sustainability management program will reinforce our company’s contribution to preserving the environment, stimulating the well-being of communities from which we source, and safeguarding resources for the long term.”

The terms of the deal have not been disclosed, but Centroflora Nutra’s business would have represented approximately US$ 17.5 million (CHF 17 million) of incremental sales to Givaudan’s results in 2017 on a pro-forma basis. The Swiss flavor house achieved sales of US$ 4.8 billion (CHF 4.7 billion) in 2016.

“Balancing consumer needs for natural products while preserving natural resources is a top priority for Givaudan,” ​added Mauricio Graber, President of Givaudan’s Flavour Division. “The combination of Centroflora’s natural extracts portfolio and its sustainability leadership with our long heritage in naturals and sustainable sourcing will bring numerous benefits to our customers, employees and communities in Brazil and globally.”

Centroflora Nutra is headquartered in Botucatu, Brazil. Givaudan plans to fund the transaction from existing resources and is expected to close early 2018.

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