Wild Flavors has said it will acquire certain assets of natural mint flavor specialist A.M. Todd Group to allow it to expand into new markets and better respond to its customers’ demands.
Switzerland-based Wild Flavors said that the acquisition is expected to be completed by October 31, 2011, subject to the approval of A.M. Todd’s shareholders. Based in Kalamazoo, Michigan, A.M. Todd produces natural mint flavors and value-added mint ingredients, and also has specific technologies for organic flavors and ingredients.
Natural mint oil prices have tended to be volatile over the past few years, and supply has fluctuated as growers have been offered better prices for other crops, particularly corn for ethanol production. According to the US Department of Agriculture, combined production of peppermint and spearmint fell from about 12.5m pounds to about 8.7m pounds from 1997 to 2007, and the number of mint farms fell from 964 to 341.
Wild Flavors said that adding A.M. Todd’s product portfolio to its existing ingredient flavor and ingredient range would allow it to expand into new markets and channels, and also assist its customers’ growth through new business lines.
A.M. Todd’s president and CEO Raymond Hughes said in a statement: “While A.M. Todd has developed the leading position in natural mint flavors, WILD will strengthen and complement the mint and ingredient competency through its fast-growing global business structure and strategies.”
Wild Flavors’ CEO Michael Ponder said that A.M. Todd’s technologies and assets would combine well with the company’s existing product development and production processes, and strengthen its ability to meet its customers’ requirements.
Wild Flavors North America’s COO Dr. Erik Donhowe said: “This transaction allows for further growth and leadership in creative product development resulting in great tasting products for the food and beverage industry.”
Financial details of the transaction have not been disclosed.