US-based Heartland Food Group, a maker of low calorie sweeteners, nutritional beverages and drink mixes, has announced the acquisition of Splenda from Johnson & Johnson.
The terms of the transaction were not disclosed and the deal is expected to close before the end of the year.
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By GlobalDataThe acquisition of Splenda is expected to provide over 100 new jobs across Heartland's Indianapolis manufacturing plant, distribution centre, and Carmel corporate office.
"We are very excited about our opportunity to own the Splenda brand business and welcome a talented team of professionals to our organisation. Splenda fits well within our strategy to offer the very best tasting products to sweeten foods and beverages without adding calories," said Ted Gelov, Heartland chairman and CEO. "The acquisition of Splenda further enhances our ability to offer our consumers products that support their growing desire to live healthier lives," he added.
During the process Heartland worked with US private-equity firm Centerbridge Partners, which it said was "instrumental in bringing the acquisition to completion".
In 2004, Johnson & Johnson and UK-based food ingredients group Tate & Lyle signed an agreement which saw McNeil Nutritionals – a subsidiary of Johnson & Johnson – retain ownership of the Splenda brand and have commercial responsibility for the worldwide Splenda brand retail and foodservice business. Tate & Lyle became the sole manufacturer and would be responsible for worldwide food and beverage ingredient sales of Splenda brand sucralose. Tate & Lyle would supply McNeil Nutritionals sucralose requirements on an exclusive basis.
Earlier this year, Tate & Lyle announced plans to "re-focus and restructure" the business, which included closing a plant in Singapore and moving all production to the US, amid pressure on profits from the business. Rumours at the time suggested Japan-based food group Ajinomoto – which manufactures rival ingredient aspartame – was eyeing the business.