Acquisition of Food Ingredients Technology
Borregaard has entered into an agreement with Watson Foods Co., Inc., West Haven (CT), USA, for the acquisition of Watson’s Ultracel technology. Borregaard will take over technology and know how, intellectual property rights and equipment located at Watson’s site in Taylorville (IL). The acquired assets will form the basis for the commercialization of Borregaard’s SenseFi® concept, which has been developed as part of the company’s Exilva project.
SenseFi® is an advanced texture system based on specialty cellulose, which will enable the development of high quality food products with reduced level of calories. Borregaard is planning to start large scale pilot production of SenseFi® at a new site to be established in Rothschild (WI) during the summer of 2014. The cost of establishing the new production facility, including the acquisition of the technology and equipment, will be close to 30 million NOK. At full capacity the pilot line is expected to generate annual sales in the range of 10 – 15 million NOK.
Borregaard has entered into a distribution agreement with Chicago (IL) based Socius Ingredients LLC to develop the North American market. Socius will utilize its Food Application Technical Center and work with food manufacturers to capture the added value opportunities presented by this new technology. In Europe, Borregaard will distribute SenseFi® in selected markets through the company’s existing sales organization.
Sarpsborg, 19. March 2014
Jørn Syvertsen, Director Investor Relations, mobile +47 958 36 335