DuPont narrows strategic focus with sale of natural colours

By Katy Askew contact

- Last updated on GMT

Ingredients manufacturer DuPont has sold its natural colours business to DDW, The Colour House.

The deal closed on 28 June. DuPont declined to share financial details and said that it does not break out revenue for the natural colours business separately to its nutrition and biosciences segment. However, a spokesperson for the Danish company said the transaction “will not have any significant impact on sales or earnings for DuPont Nutrition & Biosciences”.

Active portfolio management

Announcing the move, DuPont said the devastative is in line with its active portfolio management strategy. This aims to align the company’s portfolio with “high return opportunities”​ and is consistent with its “disciplined approach”​ to capital allocation.

“The natural colors business offers quality natural colors to a global customer base and is an attractive business with two world-class production sites. However, it is not part of N&B’s strategic focus area,”​ Matthias Heinzel, president of DuPont nutrition and biosciences, explained.

A DuPont spokesperson elaborated that this strategy sees the company “continuously invest in high-growth, high-margin areas such as probiotics, plant-based food or pharma excipients”.

“The cash from the divestment of the natural colors business will flow into this ongoing investment decision process,”​ the spokesperson told FoodNavigator.

Natural colours ‘will thrive’ under new ownership

DDW, the company taking on the colours business, is a privately held company specialising in natural colour solutions for the food and beverage industry.

“Following a strategic review of the natural colors business, we concluded that it would likely deliver greater value as part of a dedicated and leading colors player. We are convinced that the natural colors business will thrive under DDW’s ownership,​” Heinzel said.

Representatives for DDW did not immediately respond to requests for comment on the company’s plans for DuPont’s colours unit.

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