Pernod Ricard, the French drinks giant, is to sell its fruit ingredients business SIAS-MPA to Butler Capital Partners (BCP) of the US for €70 million. The current SIAS management team will retain a stake in the company.
Pernod has given BCP a credit facility of €50 million, and the partial repayment of this credit will be conditional on SIAS-MPA's future performance.
The sale to BCP will see Pernod leave the food ingredients industry completely, following the disposals last year of san Giorgio Flavors and Italcanditi.
Patrick Ricard, chairman and CEO of Pernod Ricard, said: "This transaction highlights our strategy to refocus on our core business, spirits and wine, a sector in which we are now positioned third worldwide following the recent acquisition of Seagram's assets. I would also like to acknowledge the competence and focus of the SIAS employees who allowed us to become world leaders in this sector."