Flavour producer Givaudan has signed an agreement to buy 40.6% stake in French public listed company Naturex for €135 per share, which takes the value of the deal to €522m. The deal is subject to regulatory approvals.

Givaudan plans to launch a mandatory cash tender offer for all remaining outstanding shares of Naturex at the same price per share. Naturex’s board of directors and management have given their approval.

Naturex is a producer of natural ingredients and solutions for the food, health and beauty sectors. It is based in Avignon, France and operates 16 production sites around the world and employs 1,700 people. Last year, the company posted sales of €405m.

Givaudan CEO Gilles Andrier said: “The acquisition of a significant shareholding in Naturex fits fully with our 2020 strategy to expand our offering to deliver natural products to our customers.

“The acquisition of a significant shareholding in Naturex fits fully with our 2020 strategy to expand our offering to deliver natural products to our customers.”

“Givaudan is the global leader in the space of natural flavours and Naturex further complements our capabilities with its strong portfolio of plant extracts and natural ingredients across the food and beverage, nutrition and health and personal care sectors.

“We look forward to working with the management and shareholders of Naturex in the coming months to secure their support for the acquisition.”

Givaudan’s Flavour Division president designate Louie D’Amico said: “Consumers around the world are increasingly demanding more natural and organic products from food and beverage companies.

“Naturex will be extremely complimentary to the acquisitions we have announced in this space over the last few years, namely Spicetec, Activ International, Vika and Centroflora Nutra.”

Givuadan is based in Switzerland. It operates in over 100 locations and employs over 11,100 workers. The company posted sales of Sfr5.1bn in 2017.