Irish ingredients and flavours giant Kerry Group is understood to be weighing up a potential bid to acquire the natural colours business of Danish rival Chr Hansen. Industry sources have linked Kerry Group with a move for the business after Chr Hansen chief executive Mauricio Graber told shareholders earlier this month that the company was exploring options for the future of its natural colours division, including a possible sale.

Chr Hansen’s natural colours unit is a global business with operations in Denmark, Italy, Brazil, Peru and Milwaukee in the US

The Irish Farmers Journal understands that Chr Hansen has now appointed Goldman Sachs to advise on the sale of its natural colours division, which generated sales of €224m last year on the back of 3% organic sales growth.

ADVERTISEMENT

The business unit made earnings (EBIT) of €28.5m for the year, giving it a healthy earnings margin of 12.7%. Chr Hansen’s natural colours unit is a global business with operations in Denmark, Italy, Brazil, Peru and Milwaukee in the US.

Chr Hansen’s natural colours business would certainly fit the strategic direction of Kerry Group, which has doubled down on clean label and natural food ingredient technologies in recent years.