Global nutrition group Glanbia has agreed a deal to buy US company Flavor Producers for an initial consideration of $300m from its owners Aroma Holding Company.
Under the terms of the deal, an additional deferred payment of up to $55m may also be paid - depending on the company's performance this year.
Flavor Producers provides flavours and extracts to the food and beverage industries, with a focus on organic and natural ingredients.
Glanbia said today's deal is is consistent with its strategy of acquiring complementary businesses to grow its Better Nutrition platforms.
It said it will operate Flavor Producers within its Glanbia Nutritionals - Nutritional Solutions - business, adding that Flavor Producers will significantly expand NS's flavours offering.
The acquisition will be financed by Glanbia's existing banking facilities and cash and is expected to close in the first half of this year - subject to closing conditions.
Hugh McGuire, the chief executive of Glanbia, said the acquisition of Flavor Producers represents an important step in the continued growth of the company's Nutritional Solutions business.
"This acquisition builds on our existing flavours capability and positions us well to capture long term growth opportunities in the organic and natural flavours segments," Mr McGuire said.
"M&A is an important part of our growth strategy and this transaction represents a further opportunity to scale our NS business, unlock synergies and acquire unique and complementary capabilities," he added.
Glanbia shares moved higher in Dublin trade today.
