Nestlé divesting entire stake in Givaudan


Nestlé has sold its entire stake in world’s top fragrance and flavour maker Givaudan. Nestle owns 10% stake worth $ 1.20 billion approximately in the Swiss fragrance and flavour maker. Nestlé acquired the shares when it sold the food ingredient company FIS to Givaudan for a combination of cash and stock in 2002.

The company plans to sell its 9.26 lakh shares through an institutional private placement to investors through an accelerated book building transaction. The book building is underway and the results of the placement will be announced after the process has been completed. The placement is being managed by Goldman Sachs.

The move is anticipated to come from Nestle’s strategy to focus on its core food businesses. Last month, Nestle sold the bulk stake of its Jenny Craig weight-loss business.

Givaudan is the world’s top supplier of fragrances, extracts and flavorings with customers ranging from soup and soap maker Unilever to perfume makers like Dior and Prada.

“Nestlé has been very satisfied with its holding but believes now is the appropriate time to divest,” the company said in a statement.

Nestle is the second biggest shareholder in Givaudan with a 10.03% stake. U.S. billionaire Bill Gates is the top shareholder with 10.3%.

Read Previous

Component of grape seed extract may fight prostate cancer cells

Read Next

US–China Health Products Association submit recommendations to Chinese FDA

Leave a Reply