Given the rising demand for natural colors in most food and
personal care products,
FMC Corp.
(
FMC
) has acquired U.K-based Phytone Ltd. Natural colors producer
Phytone serves the food, beverage, personal care and nutrition
sectors across the world.
Phytone will add to FMC's natural colors capabilities and
augment FMC BioPolymer's industry leading, naturally sourced
specialty ingredients that are used across food, pharmaceutical and
personal care markets. On the same lines FMC had acquired South
Pole Biogroup, a Chilean-based natural color and specialty
nutrition ingredients manufacturer in October last year. The
acquisition expanded FMC's portfolio of naturally sourced specialty
products used in the food, beverage, personal care, nutrition and
pharmaceutical markets.
These acquisitions are integral to the company's commitment to
grow its new natural colors portfolio. It also serves an important
step toward fulfilling its Vision 2015 growth strategy. A key
Vision 2015 goal was to broaden its food product and technology
platform by moving into adjacent market spaces. FMC estimates that
by 2015 the high-growth, natural colors market will grow beyond $1
billion.
The natural food color industry is growing fast driven by the
increasing awareness among consumers regarding environmental
hazards of synthetic colors and the harmful impact of chemicals
used for manufacturing. European countries have banned
manufacturing of synthetic dye based colors and the products
containing such colors. The embargo also includes the import of
products using such colors.
We thus appreciate FMC's move to increase its presence in the
natural colors market. We currently have a Neutral recommendation
on FMC which corresponds to the Zacks #3 Rank (short term Hold
rating) held by the stock in the near term.
FMC Corp. is a diversified chemical company serving
agricultural, industrial, environmental and consumer markets
globally for more than a century with innovative solutions,
applications and quality products. The company operates its
businesses in three segments: Agricultural Products, Specialty
Chemicals and Industrial Chemicals. It competes with the likes of
The Dow Chemical Company
(
DOW
) and
E. I. du Pont de Nemours and Company
(
DD
).
DU PONT (EI) DE (DD): Free Stock Analysis
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