Symrise AG has announced that it has signed a purchase agreement for the acquisition of Giraffe Foods Inc., a Canada based producer of customised sauces, dips, dressings, syrups and beverage concentrates for B2B customers, in the home meal replacement, food service and retail markets.
With this transaction, Symrise will take a major step forward in the value chain, providing a wider variety of advanced taste solutions to a larger customer base in North America. This move will drive accelerated growth in the region for Symrise’s Flavor & Nutrition segment. In their fiscal year ended June 2021, Giraffe Foods saw an increase in sales above 25%, generating revenues of approximately CA$80m. The closing of the transaction is expected before the end of 2021. The purchase amount has not been disclosed.
“We consider this acquisition as a strategic opportunity to expand our portfolio into the highly attractive market for customised flavour and taste enhancement solutions. By combining Symrise’s Flavor & Nutrition expertise with Giraffe Food’s custom formulation capabilities, we aim to become a leader in integrated taste solutions in North America to always better serve our customers. The acquisition of Giraffe Foods supports our well established Symrise businesses in the region and will enlarge our value proposition in Taste, Nutrition and Health,” said Dr. Jean-Yves Parisot, president of Flavor & Nutrition of Symrise AG.
Through this acquisition, Symrise has strengthened its market position with a fast-growing customer base in North America and will benefit from Giraffe Foods’ high degree of customer intimacy. Additionally, moving further down the value chain will facilitate access to and further develop new capabilities, including advanced food science and culinary expertise, proprietary recipes as well as new and sustainable packaging formats.
Giraffe Foods Inc. is a leading player in the formulation and manufacturing of custom taste solutions in a wide array of packaging. Based on its advanced R&D and culinary capabilities, customers rely on Giraffe to formulate and produce unique sauces, dressings, syrups, beverage concentrates and more. In addition, customers also value Giraffe for their wide options of packaging and broad range of processing capabilities housed in state-of-the-art facilities. The food service, value added protein and home meal replacement sectors have historically seen strong growth in both North America and Europe.
Ari Powell, chief executive officer of Giraffe Foods Inc., said: “I am very excited about this transaction. Our two organisations share a common culture that always puts the customer first. We will now be able to provide a larger variety of advanced flavour solution systems and products to a broader set of customers, accelerating our growth for years to come.”
Symrise will acquire 100% of Giraffe Foods Inc. from private investment firm Graham Partners and the founding Powell family. Symrise will finance the transaction through a dedicated bank facility. As part of the transaction, Symrise will acquire the existing two production facilities and one warehousing site and integrate the approximately 250 employees of Giraffe Foods.