Cargill Buys Degussa AG Food Line

LONDON - Sep 11/05 - SNS -- Cargill is buying the food ingredient operations of Degussa AG of Dusseldorf, Germany, for 540 million Euro or about U.S. $670 million, pending approval of the Degussa Supervisory Board and the relevant regulatory authorities.

In a consolidating food ingredients industry, the Degussa Management Board decided in August 2004 to divest its Food Ingredient business in order to provide it with the opportunity for a further development into a leading global position.

After selling the Fruit Systems activities in early 2005, today the Degussa Food Ingredients Business Unit consists of the Texturant Systems and Flavors Business Lines. Texturant Systems is comprised of product groups in the areas of hydrocolloids, blends, lecithin, cultures and bioactive ingredients.

The Flavors Business Line produces flavoring solutions for the beverage, dairy, confectionary and other food sectors and provides key capabilities in formulation, application, analytical chemistry and sensory analysis. The expertise of Degussa's Food Ingredients employees will complement and strengthen that of the existing Cargill organization.