FDBusiness.com

Raisio Acquires Benecol Business From Johnson & Johnson

 Breaking News
  • Carlsberg Group Increases Ownership in Cambodian Business Carlsberg Group has increased its ownership in the Cambodian brewer Cambrew from 50% to 75%. Cambrew is among the largest brewers in Cambodia. Its largest beer brand – the iconic Angkor Premium Beer with its well-known tagline ‘Our Country, Our Beer’ – is a popular brand among Cambodian consumers. In addition, Cambrew produces and bottles [...]...
  • Kerry Group Reports Healthy Volume Growth Kerry Group, the global taste & nutrition and consumer foods group, has reported a solid underlying business performance for the half year ended 30 June 2018. Group revenue on a reported basis increased by 1.4% to €3.2 billion, reflecting strong volume growth and contribution from acquisitions, offset by adverse currency movements. Business volumes grew by [...]...
  • Glanbia and US Partners to Build $470 Million Cheese and Whey Factory Glanbia, the global nutrition group, along with US dairy co-operatives – Dairy Farmers of America and Select Milk Producers – expect to commission their new joint venture large-scale cheese and whey production facility for the State of Michigan in the fourth quarter of 2020 at a cost of $470 million. The new facility will process 3.6 [...]...
  • Ardagh Group Completes Conversion of Rugby Plant From Steel to Aluminium Ardagh Group has announced that it has recently completed the conversion of its Rugby (UK) beverage can manufacturing plant from steel to aluminium. “The conversion of the Rugby plant has further enhanced Ardagh’s manufacturing footprint. Operating two highly-efficient aluminium beverage can plants in the UK, at Wrexham and Rugby, supported by our recent investment in [...]...
  • New Production Line For Danish Crown to Serve Japanese Market Japanese consumers and restaurants have for decades had a strong preference for Danish pork, which is still growing. Danish Crown is consequently installing a new production line at its abattoir in Blans near Sønderborg, which will increase the number of employees from 1,100 to 1,200. Danish Crown’s exports to Japan amounted to more than DKr3 [...]...

Raisio Acquires Benecol Business From Johnson & Johnson

Raisio Acquires Benecol Business From Johnson & Johnson
November 21
12:35 2014

Raisio Group, the Finland-based international specialist in plant-based nutrition, has acquired the Benecol business in the UK, Ireland and Belgium from global health care giant Johnson & Johnson and amended its agreement concerning the North American rights to Benecol in a deal worth Eur88.4 million. In the UK and Ireland, Benecol is the market leader in cholesterol-lowering functional foods. The acquisition is estimated to increase Raisio’s EBIT by some Eur9 million annually.

For the first time since 1997, Raisio will have all the rights to the Benecol brand and plant stanol ester, the Benecol product ingredient. This will allow Raisio to develop the business globally on a new basis.

“Benecol is a globally well-known cholesterol-lowering functional food brand owned by Raisio. The acquisition of the Benecol business in the UK, Ireland and Belgium as well as the amended agreement in the USA strongly support Raisio’s growth strategy with its branded business. In terms of Benecol products, Raisio’s long-term strategic goal is to enhance competitiveness in the existing markets, to expand into new markets as well as to innovate new products. Through this arrangement, we will have the opportunity to develop Benecol business on our own terms, following our strategic objectives,” says Raisio plc’s CEO Matti Rihko.

Johnson & Johnson has had the exclusive right to sell and market Benecol products in the UK, Ireland and Belgium. With the acquisition, rights to the Benecol trademark and plant stanol ester patents held by Johnson & Johnson will return to Raisio. The US business is included in the deal, but Johnson & Johnson will continue as Raisio’s licensee for the time being. The amended agreement allows for the return of the Benecol rights and transfer of certain US assets to Raisio or its possible new licensee at a later date.

The completion of the Eur88.4 million deal does not require an approval from the competition authorities. Raisio financed the acquisition by a long-term loan of Eur80 million.

This arrangement meets the criteria that Raisio has set on its acquisitions and is in line with the company’s vision focusing on healthy and ecological snacks. Furthermore, EBITDA/EV factor is also in accordance with Raisio’s acquisition policy.

With the acquisition of the Benecol business in Europe, a few employees will join Raisio in the UK. In 2013, net sales of Benecol in the acquired European countries and USA were approximately Eur76 million, of which the UK and Ireland accounted for some 85%. In the UK and Ireland, Benecol products are market leaders in cholesterol-lowering functional foods.

Plant stanol ester of Benecol products has been chosen one of the world’s most significant nutritional innovations. Benecol products are sold in almost 30 countries on five continents. Benecol® is Raisio’s trademark and plant stanol ester the company’s widely patented ingredient of Benecol products. Benecol products account for about a fifth of the total consumer market for cholesterol-lowering functional foods worth approximately Eur1 billion.

Meanwhile, Raisio has decided to write down the book value of its Honey Monster cereals brand by Eur10 million as part of the restructuring of activities related to the Benecol acquisition.

The UK’s breakfast cereal category is not growing and its profitability has declined. Sales and profitability of Honey Monster cereals are therefore also expected to remain permanently below the normal levels of recent years. The write-down has no cash effect.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 12, 2018Packaging Innovations & Luxury Packaging London 2018
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements