Global bioscience company Chr Hansen has finalised an agreement to divest its food-colouring business to EQT IX Fund in an €800m ($930m) deal.

Natural Colors is engaged in the production of natural colouring ingredients using all-natural fruit and vegetable concentrates such as sweet potatoes, grape skin, spirulina, carrots and beetroots, which are used by the food and beverages manufacturers.

The Danish firm noted that the conversion from artificial to natural colourants is highest among producers of dairy and fruit preparations, confectionery, ice cream, prepared foods and beverages.

Chr Hansen CEO Mauricio Graber said: “The divestment of the Natural Colors division completes the review part of our recently launched 2025 Strategy. Chr Hansen can now focus on fulfilling the ambition of becoming a pure-play, microbial and fermentation company with industry-leading, profitable growth.

“I am convinced EQT will be a great owner of the Natural Colors business, which has a leading global position in the industry. During the process, it has become clear that EQT showed the strongest conviction in the potential of the business, and the highest dedication to the future development of it.”

Completion of the transaction is subject to regulatory approvals and is expected to close during early next year.

The acquisition is said to be in line with EQT’s strategy to focus on continued organic growth in the US and Asian markets.

Going forward, EQT intends to make significant investments in Natural Colors organisation and strengthen its digital infrastructure, sustainability capabilities, and supply chain setup.

EQT Partners partner and EQT IX investment adviser Mads Ditlevsen said: “We are immensely proud and humble of having been chosen as the future owner of Natural Colors. It is a high-quality and truly global business with a proud legacy of servicing customers all over the world for more than 100 years.

“We are highly impressed by the strong ESG profile, the high-quality organisation and talented people we have met during this process, as well as the dedicated focus on food safety.”

Earlier this month, Chr Hansen signed an agreement with industrial biotechnology company Jennewein Biotechnologie to acquire its complete stake in a €310m ($362m) deal on a debt-free basis.