As part of its 2020 strategy to strengthen capabilities in integrated solutions, Givaudan will acquire ConAgra Foods’ Spicetec Flavors & Seasonings business for $340 million.

Spicetec offers a range of flavors, spices and savory seasoning solutions to customers, primarily in North America and operates from locations in Omaha, NE; Carol Stream, IL and Cranbury, NJ, employing 280 people. The transaction is expected to add approximately $185 million to Givaudan’s revenue on a full year basis.

Gilles Andrier, CEO of Givaudan said, “This acquisition fits with our 2020 strategy to expand our offering to deliver integrated solutions where flavor and taste play a key role. Spicetec brings complementary capabilities to Givaudan with its strong portfolio of spices, seasoning blends and natural solutions. We are delighted to welcome Spicetec’s employees to Givaudan; our high cultural fit will contribute greatly to a successful integration.”

Mauricio Graber, president of Givaudan’s Flavour Division said: “Combining Givaudan’s leading flavor expertise with Spicetec’s portfolio of products will enable us to deliver a broader range of solutions to our customers in processed meats, savory retail and foodservice. Furthermore, these additional capabilities will help us strengthen the breadth of our industry leading natural ingredients, flavor and taste solutions.”

The total purchase price is $340 million, which Givaudan plans to fund from existing resources. As the planned transaction is structured as an asset deal, the amounts paid include tax benefits, which are typical with this type of transaction. Final cash consideration will be subject to adjustments for working capital. The planned acquisition remains subject to formal approvals from the relevant antitrust authorities. The transaction is expected to close in the next 60-90 days.