Dutch food ingredients company Corbion said on Monday it plans to acquire Granotec do Brazil for $45 million (€39.8 million) to expand its Latin American business.
Corbion, which has agreed with Granotec shareholders to acquire full ownership of the company, is following in the footsteps of a number of its customers who have set up businesses in Latin America, notably Mexico, said Wim Hoste, analyst at KBC Securities.
"It's a nice add-on [the deal] and platform for growing the Latin America bakery business," Hoste said.
Granotec do Brazil, which reported core profit of $3.7 million on revenue of around $26 million for 2018, specialises in bakery ingredients, such as enzymes, flavourings and colourants. After the deal it will be integrated in Corbion's Brazilian operations.
Netherlands-based Corbion will finance the acquisition from its debt facilities, it said.