US natural foods and drinks company J.M. Smucker is to acquire the formulated fruit and vegetable preparation businesses of flavours giant, International Flavors and Fragrances Inc.
In a press release on Monday, Smucker, which posted $651 million in 2001 sales, said the U.S. and Brazilian businesses sell a combined $28 million in products annually to bakeries and dairies. The products are used to make of yoghurts and baked goods.
Richard Smucker, President and Co-CEO of Smucker said in a statement this week, "This acquisition supports the diversification strategy of our industrial business by adding several major food customers to our already strong customer base. More importantly, it continues our drive to strengthen and expand our overall business and continually enhance shareholder value.''
Mr. Smucker continued, ``By integrating production into our existing facilities, this acquisition also allows for fuller utilisation of our current assets and will result in improved efficiencies.''
Terms of the agreement were not disclosed.