SWITZERLAND – Food giant Nestle has announced that it is to sell Food Ingredients Specialities (FIS) to flavour and fragrance firm Givaudan.

Givaudan will pay one billion euros for FIS, to be paid in shares and cash.

Commenting on the deal, Nestle chief executive Peter Brabeck-Letmathe said: “This move emphasises our determination to concentrate on our consumer businesses… Taking a minority share in Givaudan constitutes a solid base for a long-term relationship between the two companies.” FIS specialises in savoury food flavours used in soups, sauces and prepared meals. It has a turnover of around 560 million euros.

According to Nestle, FIS’s savoury knowledge and Givaudan’s expertise in sweet and concentrated flavours will combine well, offering all types of flavours to its food and beverage customers.

Givaudan will take over FIS in Chƒtel-Saint-Denis, Switzerland and its subsidiaries. The FIS factory in Kemptthal will also fall under Givaudan control. Nestle’s research and development centre in Kemptthal will not be affected by the deal.