Dutch food processor Wessanen has said it is considering acquiring Swiss pharmaceutical firm Novartis’ health and nutrition brands.
In a statement, Wessanen board member Koos Kramer told the Reuters news agency: “We are interested [in buying those brands] based on the information we currently have”. The portfolio includes Ovaltine, Isotar and Powerplay.
The news follows a Novartis announcement on 4 February, which said it planned to divest its health and functional foods business within six to 12 months. Novartis will retain its Gerber baby food brand.
At the time, Novartis chief executive Daniel Vasella said: “Our health and functional foods brands are strong and well established and we believe their growth can be accelerated in companies where it is a good strategic fit.” The news came as Wessanen posted falling results for 2001 as the company continues to further focus on functional and natural food products.
Earnings per share were e0.94 for 2001, down from e1.16 in 2000. The company’s net income dropped from r98 million in 2000 to r78 million. Wessanen claimed that this was in line with targets for the year.
As part of its restructuring programme, the company disposed of its US dairy interests in 2001, as well as operations in Thailand and its share of alcohol group Campari. It also acquired Dutch health food company Zonnatura, American natural food distributor Food for Health, Canadian health food distributor Preisco/Jentash Foods and German functional foods company Corposan. Corposan owns the Taartexm, Dr Ritter and Allos brands. On top of this, Wessanen has acquired a 41% interest in Dutch health food supplier and distributor Natudis.
For 2001, Wessanen’s pre-tax profit was e125 million, compared with e154 million in 2000. The company blamed the drop on poor results for the Leerdammer company due to rising milk prices and the US dairy companies no longer contributing to sales.
Looking to 2002, the company said that its gross earnings would increase 15%, not allowing for further acquisitions, with earnings per share expected to drop no more than 10%. Over the next five years, Wessanen expects growth in earnings per share will average 10% a year.