Nestle sells flavour unit

January 18, 2002 Posted: 1013 GMT

LONDON (CNN) -- Givaudan, the world's No. 2 maker of flavours and fragrances, agreed on Friday to buy Nestle's FIS flavour unit for 750 million Swiss francs.

The $450 million deal boosts Givaudan's ambition to close the gap on global leader International Flavors and Fragrances Inc. The acquisitions also expand the Swiss company's savoury additives business.

Givaudan's chief executive Jurg Witmer said the acquisition "is an important step forward in attaining undisputed industry leadership. Through this transaction, we strengthen our position in savoury flavours and become the world leader in this domain."

Savoury flavours are used in such items as soups, sauces and prepared dishes. Givaudan will strengthen its role as one of Nestle's biggest supplier. Nestle, the world's biggest food company, said it plans to focus its energies on its consumer businesses.

FIS, or Food Ingredients Specialities, has annual sales of around 400 million Swiss francs. Givaudan has been searching for acquisitions after it was spun off from Swiss drug company Roche Holding in 2000.