The Dutch flavour ingredients firm has said it will take over the commercial and the production activities of Heinz’s aroma and hydrolysed vegetable protein (HPV) business which will be gradually integrated into Exter’s own production facility in the Netherlands.
Aroma and HVP ingredients bring savoury flavour to products such as soups, sauces, snacks and meat products.
The company said that the transfer fits the strategies of both companies as Heinz` focus will be primary on the development of leading brands and Exter’s intention is to develop and produce savoury food ingredients to be sold to the food, flavour and seasoning industry.
Lambert ten Haaf, co-owner of Exter which is based in Zaandam, told FoodNavigator.com that its facility in the Netherlands is the main production unit from which is supplies products all around the world.
Meanwhile the Heinz’s aroma and HVP business is based entirely within its facility in Holland.
Ten Haaf said: “The plan is to integrate that into our own business over time which means we will transfer all the knowledge and equipment.
“The acquisition strengthens our business. The products Heinz produces, we also make ourselves, so we get a bigger base and bigger market share.
“It will also expand the scope of the knowledge that we have and access to a broader product range.”
Ten Haaf said that both Exter and Heinz have their own flavour profiles which although in many cases were similar, also had some differences that it could benefit from.
He gave the example of savoury meat profiles, which can have a wide variety of different tastes.
A Heinz spokesman told FoodNavigator.com that the Netherlands is the only place that the company produces HVP and aromas and they sold it in order to concentrate on its own brands.
He said: “That is our corp business and that is the reason why we decided to do this.”
Exter said in a statement: “Both Exter and Heinz are convinced that the transaction will maximize the value of this business and ensure continuity for its customers.”
Expansion plans
The acquisition fits neatly with the expansion strategy that Exter, which was acquired from DSM by holding group Oterap in 2003, set out last year.
The company told FoodNavigator.com in May that it had the capacity to expand its Netherlands facility and it was also looking to establish new facilities in “high potential” markets such as North America or Asia .
The timescale then for expansion was one to three years, whether that would be through establishing a plant from scratch or acquisitions, or a joint venture.