Danish ingredients maker Chr Hansen Holding A/S said on Saturday it would sell its food colouring business to Swedish private equity firm EQT for 800 million euros ($930.40 million).

The Danish company makes probiotic products that support the immune system and has enjoyed a boost in sales as the pandemic forces consumers to opt for prepared food products.

Chr Hansen, whose customers include the world’s largest food manufacturers such as Nestle and Danone, said in July it would explore options for its natural colours unit, which does not use its core fermentation technology.

The company, which sells enzymes and bacteria used in products like dairy, dietary supplements and wine, said that month it had seen rising demand for probiotics, live bacteria used in yoghurt and dietary supplements.

The deal, which will be cash based and debt free, is expected to close during the spring of 2021.

The company said its long-term financial forecast is unaffected by the divestment.

Source: Reuters

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