Denmark's Chr Hansen to sell food colouring unit to Sweden's EQT

Chr Hansen Holding A/S

26/09/2020 05:47

Sept 26 (Reuters) - Danish ingredients maker Chr Hansen
Holding A/S  CHRH.CO  said on Saturday it would sell its food
colouring business to Swedish private equity firm EQT  EQTAB.ST 
for 800 million euros  ($930.40 million).
    The Danish company makes probiotic products that support the
immune system and has enjoyed a boost in sales as the pandemic
forces consumers to opt for prepared food products.
    Chr Hansen, whose customers include the world's largest food
manufacturers such as Nestle  NESN.S  and Danone  DANO.PA , said
in July it would explore options for its natural colours unit,
which does not use its core fermentation technology.
 urn:newsml:reuters.com:*:nASN0008VL
    The company, which sells enzymes and bacteria used in
products like dairy, dietary supplements and wine, said that
month it had seen rising demand for probiotics, live bacteria
used in yoghurt and dietary supplements.  urn:newsml:reuters.com:*:nL8N2E917M
    The deal, which will be cash based and debt free, is
expected to close during the spring of 2021.  urn:newsml:reuters.com:*:nASN000DNI
    The company said its long-term financial forecast is
unaffected by the divestment.
       
($1 = 0.8598 euros)

 (Reporting by Rama Venkat in Bengaluru; Editing by Sam Holmes)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))