By Dominic Chopping

 

STOCKHOLM--Swedish private-equity firm EQT AB said Saturday it has agreed to buy Chr. Hansen AS's food-coloring business for 800 million euros ($930.5 million).

EQT said the Natural Colors business, which produces natural coloring ingredients for food and beverages, is supported by favorable secular megatrends, such as increasing consumer awareness around health and the environment, the continuing transition from synthetic coloring components to natural ingredients and a growing demand for sustainable and plant-based food.

Headquartered in Horsholm, Denmark, Natural Colors employs around 650 people and has grown organically by around 9% a year during the past five years. The company generated sales of EUR224 million in 2018-19.

Natural Colors products are primarily used in food and beverages where the conversion from artificial to natural colorants is highest, such as dairy- and fruit preparations, confectionary, ice cream, prepared foods and beverages.

The deal is subject to customary conditions and regulatory approvals and is expected to close in the first half of 2021.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

September 28, 2020 01:43 ET (05:43 GMT)

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