Antitrust Division of the Department of Justice (“DOJ”) proposed the divestiture of chicken-based food ingredient manufacturing facility of Symrise AG in Banks County, Georgia to clear Symrise AG’s acquisition of International Dehydrated Foods LLC (“IDF”) and American Dehydrated Foods LLC (“ADF”) from IDF Holdco Inc. and ADF Holdco Inc.
The German based publicly listed company Symrise AG has diversified operations in multiple areas. Diana Food and Diana Pet Food are subsidiaries of Symrise AG, manufacturing and selling chicken-based food ingredients. IDF and ADF are headquartered in Springfield, Missouri, whose operations include two chicken-based food ingredient plants in Alabama and Missouri. If this transaction will occur without the divestiture, the new company would dominate 75 percent of the domestic market that consist of manufacturing and selling of chicken-based food ingredients. Moreover, DOJ reached the understanding that the integrated company will have sufficient power to increase prices, reduce service and quality and decrease R&D investments.
If the court approves the proposed settlement, Symrise AG have to sell the above mentioned facility to a third party approved by DOJ. A potential acquirer of this facility is expected to be a rival company with the merged entity.