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Sensient agrees to buy global natural color business

Friday, February 9, 2018   (0 Comments)
Business Journal

David Schuyler

 

 

Sensient Technologies Corp. said after markets closed Thursday that it has agreed to buy the natural color business of GlobeNatural, a natural food and ingredient company based in Lima, Peru, that’s owned by the Michell Group.

Terms of the transaction were not disclosed in a press release. Milwaukee-based Sensient (NYSE: SXT) said the deal is expected to close in the first quarter of 2018. The business will operate as Sensient Natural Colors Peru SC.

Sensient, a supplier of colors, flavors and fragrances to the food and beverage, pharmaceuticalm cosmetic, inkjet and other industries, said GlobeNatural’s products are used in a range of food and beverage applications in every region of the world.

"This acquisition is an important component of our ‘seed to shelf’ initiative in food colors,” said Paul Manning, chairman and CEO of Sensient Technologies. "Eighty percent of food products launched globally use natural colors and coloring foodstuffs and we anticipate that this market will continue to grow.”

Sensient also said Thursday that its net income for the fourth quarter of 2017 declined 57 percent to $13.4 million, or 31 cents per share, from $31.4 million, or 70 cents per share, for the same period a year ago. Results for 2017 included restructuring charges and a charge for the impact of the recent tax reform law that reduced net income by $2.9 million and $18.4 million, respectively. Excluding those and other charges, and restructuring costs incurred in 2016, adjusted net income increased 3 percent to $36.6 million, or 84 cents per share, from $35.6 million, or 80 cents per share, the year before. Net sales for the quarter dipped to $328.9 million from $330.2 million.


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