Swiss flavours and fragrances firm Givaudan has signed an agreement to acquire Vietnamese flavour company Golden Frog.

The companies did not disclose financial details of the deal, which is expected to close in the second half of 2019.

Headquartered in the Ho Chi Minh area, Golden Frog is engaged in the development of natural flavours, extracts and essential oils for the food and beverage industry.

The company’s product portfolio also includes a range of natural ingredients such as herbs, spices, fruit and vegetable extracts and essential oils.

The acquisition is part of Givaudan’s 2020 strategy to further strengthen its naturals capabilities, as well as its presence in the Asia Pacific region.

Givaudan Flavour Division president Louie D’Amico said: “Strengthening and expanding our offering in naturals continues to be a key priority for Givaudan.

“The addition of Golden Frog’s product portfolio, talent and know-how will further enable Givaudan to provide global, regional and local customers with complete and competitive natural solutions.”

Golden Frog, which employs 156 people, caters to the requirements of the ASEAN markets.

Givaudan said stated that Golden Frog’s business would have represented approximately Sfr10m ($9.9m) of incremental sales to its results in 2018 on a proforma basis.

“Strengthening and expanding our offering in naturals continues to be a key priority.”

Givaudan APAC regional commercial head Monila Kothari said: “With a growing population of over 97 million people, Vietnam is a market with tremendous growth potential for Givaudan in the Asia Pacific region.

“The combination of Golden Frog’s naturals portfolio with our long heritage in naturals and sustainable sourcing will expand our leadership position in the country and bring numerous benefits to our customers, employees and communities locally and across the ASEAN region.”

Earlier this month, the company completed the acquisition of Albert Vieille, a French company specialised in natural ingredients used in the fragrance and aromatherapy markets.