Following the receipt of an acceptable offer by the Danish company Danisco, Rhodia announced that the two companies have entered into exclusive negotiations concerning the sale of Rhodia's food ingredients business. The business includes the cultures, hydrocolloids and food safety products activities.
The two parties expect to reach an agreement shortly. The transaction would be finalized during the second quarter of 2004, after consultations have been held with employee representatives and legal authorizations received.
The food ingredients business, which has few synergies with other Rhodia businesses, generated sales of 211 million euros in 2003 and includes 860 employees.
The divestiture marks the first step in Rhodia's plans to re-focus its business portfolio and will contribute significantly to debt reduction.