‘We will become the number 2 global player in natural colours’: Givaudan talks DDW acquisition

13-Oct-2021 - Last updated on 13-Oct-2021 at 15:38 GMT

Givaudan acquisition increases reach in natural colourings segment / Pic: GettyImages-Saturated

Related tags Givaudan acquisition Natural colours

Swiss flavours and fragrances giant Givaudan has announced plans to acquire DDW, The Color House, in a deal that will make it a ‘global leader’ in the natural colours space.

The acquisition will extend Givaudan’s geographic footprint in the global natural colours market, which was valued at US$7.7bn in 2019 and is expected to grow at relatively high pace compared to the synthetic colours market.

“DDW will enable Givaudan to expand its global footprint in colours, bringing production closer to its customers around the world,” Louie D’Amico, President of Taste & Wellbeing at Givaudan told FoodNavigator. “The combination of both companies will enable us to build a leading natural colour platform worldwide.”

Privately held DDW currently operates 12 manufacturing facilities around the world, including in the US, UK, Ireland, Brazil, Chile and China.

‘Givaudan acquired DDW for its growth potential’

Givaudan placed the acquisition in the context of its 2025 strategy, which plans to deliver like-for-like sales growth of 4-5% over the next four years by concentrating on growth pillars such as expanding the portfolio, extending its customer reach and developing focused market strategies.

DDW’s business would have represented approximately US$140m in incremental sales to Givaudan’s results in 2020 on a proforma basis, the company revealed.

Adding the US-based natural colour company to its existing colour business will step-up Givaudan’s natural colours offering, broadening its existing colours portfolio.

“DDW’s product portfolio provides an extension to Givaudan's current offering and footprint in colours and will bring many complementarities to Givaudan’s current business… DDW will bring to Givaudan a broad portfolio of products across natural colours, colouring foods, caramel colours and burnt sugars. DDW has a robust innovation pipeline for stable natural blue, natural brown, green and red, which supports the development of a diversified colour portfolio for our business,” D’Amico stated.

D’Amico stressed that the deal is about unlocking the growth potential of the natural colours market. “Givaudan acquired DDW for its growth potential and with this acquisition, Givaudan will become the number two global player in natural colours,” he told us.

Terms of the deal were not disclosed but Givaudan did say it will debt fund the acquisition, which is expected to close in the fourth quarter of this year.

The agreement remains subject to antitrust approval. Until competition approval is secured, each business will continue to operate on a stand-alone basis and DDW’s management team will remain in place during this period.

“I am very proud of all that DDW has accomplished throughout its more than 150 years as a privately held company and we are confident that we will continue to flourish as part of Givaudan,” said DDW’s Chairman Ted Nixon. “We believe that we have a strong set of shared purpose and values with Givaudan and that this transaction represents a very positive step for DDW’s customers and associates.”