Danisco A/S to acquire Rhodia Food's food ingredients operations for DKK2.4bn

Nordic Business Report, March 11, 2004

NORDIC BUSINESS REPORT-11 March 2004-Danisco A/S to acquire Rhodia Food's food ingredients operations for DKK2.4bn(C)1994-2004 M2 COMMUNICATIONS LTD http://www.m2.com

The Danish food ingredients, sweeteners and sugar producer Danisco A/S said on Thursday (11 March) that it had agreed to acquire the food ingredients operations of the French food group Rhodia Food for approximately DKK2,400m.

The transaction, initially proposed in February, covers Rhodia Food's food ingredients activities within texturants and speciality products with total sales of DKK1,575m.

Danisco said that in addition to consolidating its position as the preferred partner to the food industry the deal would effect cost synergies of at least DKK120m over three years.

"Substantial additional synergies, not included in this estimate, are expected to arise from better utilisation of the sales force and the increased access to a broader customer base," Danisco said.

The transaction requires the approval of the competition authorities.

One Danish krone (DKK) is worth approximately 0.09 British pounds (GBP).

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