Danish biosciences group Chr. Hansen is working with Goldman Sachs on the disposal of its Natural Colors division, according to two sources familiar with the matter.
The timeline for the collection of first-round bids is yet to be decided, one of the sources said, as the region enters into the summer vacation period.
Natural Colors booked EBIT of EUR 20.6m on revenues of EUR 165m for the nine months ended 31 May 2020, company filings show.
The division could garner interest from both strategic and private equity bidders, according to the first source.
Chr. Hansen announced in an interim earnings report earlier this month that it was exploring strategic options for the unit, including a potential sale, noting “Natural Colors does not share the microbial and fermentation technology platforms.”
Natural Colors, which provides natural colouring for applications including confectionary, ice-cream, beverages and pet food, accounts for 19% of the group’s revenue and has facilities in Denmark, Italy, Brazil, Peru and the US.
Chr. Hansen, which provides natural ingredient solutions across the food, nutritional and agricultural sectors, reported Q3 EBIT of EUR 97m, up 5% YoY.
Chr. Hansen confirmed Goldman Sachs’s appointment but declined to comment further. Goldman Sachs declined to comment.
by Georgina Barnard, Ryan Gould and Auri Aittokallio in London