Swiss flavour company Givaudan announced that it has reached an agreement to acquire Golden Frog, a Vietnamese flavour company.
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The European firm said the acquisition is part of its 2020 strategy to strengthen its “naturals capabilities” and increase its impact in Asia-Pacific.
“Strengthening and expanding our offering in naturals continues to be a key priority for Givaudan,” said Louie D’Amico, president of Givaudan’s flavours division.
“The addition of Golden Frog’s product portfolio, talent and know-how will further enable Givaudan to provide global, regional and local customers with complete and competitive natural solutions,” added the executive, in a press release on Tuesday.
While terms of the deal have not been disclosed, Givaudan said it plans to fund the purchase from existing resources. It will finalise the deal in the second half of 2019.
Vietnam has a growing population of over 97 million people, offering “tremendous growth potential for Givaudan in the Asia Pacific region,” said Monila Kothari, Regional Commercial Head, APAC, at Givaudan.
“The combination of Golden Frog’s naturals portfolio with our long heritage in naturals and sustainable sourcing will expand our leadership position in the country and bring numerous benefits to our customers, employees and communities locally and across the ASEAN region,” added Kothari.
Headquartered in Ho Chi Minh City, Golden Frog manufactures natural flavours, extracts and essential oils for the food and beverage industry. It offers natural ingredients including herbs, spices, fruit and vegetable extracts and essential oils – all sourced locally. Established in 2002, the firm employs 156 people and caters to the needs of the ASEAN markets.
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Givaudan is headquartered in Switzerland and has a local presence in over 145 locations, with more than 13,600 employees worldwide.
The firm achieved sales of CHF 5.5 billion in 2018.
Michael Causton is the co-founder and partner at JapanConsuming, a specialist research firm on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market to help subscribers keep up to date with the latest trends and data. JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and consulting on market strategies and future trends.