The industry has been watching for several years to identify who are going to be the serious players in the blends business of the future. The key pieces of activity industry watchers were looking for was who would buy CCI and who would buy G.C. Hahn. Now the answer is clear - Tate & Lyle. Other companies who claim to be serious about a global blends activity have very much tinkered around the edges buying up smaller players but Tate & Lyle has jumped ahead of them all with its latest acquisition of G.C. Hahn.
GC Hahn as a reputation for providing a quality service, rapid turn around times and a willingness to service small to medium order sizes. GC Hahn has been expanding into developing Asian markets taking it out of its traditional European market.
The original anouncement from Tate & Lyle reads:
Tate & Lyle, the global renewable ingredients company, today announced the signing of an agreement to acquire an 80% holding in German specialty food ingredients group G. C. Hahn & Co ("Hahn") for a total cash consideration of £79 million (€116 million). The transaction is subject to German antitrust approval and is expected to be completed by 31 May 2007.
Hahn is privately owned and was founded in 1848. Its headquarters and primary operations are located in Lübeck, Germany. It also has production operations in the UK, USA and Australia, and sales offices in 22 countries. Hahn is a recognised leader in dairy stabiliser systems and works closely with customers across the world to develop customised ingredient solutions. Hahn has been a customer of Tate & Lyle for many years. In the year ended 31 December 2006 the company generated sales of €102 million and profit before interest, tax, exceptional items and amortisation of €10 million on net assets of €43 million.
“The combination of Hahn with Tate & Lyle’s existing products, systems and applications skills will provide our customers with a comprehensive texturant offering with particular expertise in the dairy and convenience food sectors”, said Iain Ferguson, Tate & Lyle's Chief Executive.
"This investment complements our existing teams, in particular at Cesalpinia Food and Tate & Lyle Custom Ingredients, and will strengthen our European marketing presence, opening new opportunities for developing our SPLENDA® Sucralose business."
The former owner will retain 20% of Hahn. The agreement includes options which provide for Tate & Lyle to acquire the outstanding shares in due course. In the meantime, Tate & Lyle will continue to have the support of the founding family in cementing the partnership between Tate & Lyle and Hahn commenced with this investment.
The original announcement can be found at: Tate & Lyle