US firm shows Phytone the colour of its money

BURTON food colouring manufacturer Phytone has been bought by Philadelphia-based chemical company FMC Corporation.

The local firm was advised on the sale – for an undisclosed sum – by Birmingham’s Clearwater Corporate Finance.

Phytone manufactures natural colours and other naturally derived ingredients primarily for the global food industry. The acquisition will provide directors, Andrew Kevill and Bruce Henry, and other family members, with an exit and realisation of their original investment.

The firm was founded in 1989 and employs more than 40 people in development and manufacturing. Applications for its products, which are sold in more than 30 countries include drinks, ice cream, desserts, sauces and meat products.

Formed in 1883, FMC Corporation has developed into one of the world’s largest chemical businesses, with leading positions in the global agricultural, industrial and consumer markets. The business employs more than 5,000 people worldwide and generated annual sales of $3.4bn in 2011.

Partner Paul Newell led the deal team for Clearwater. He said: “Some of the larger players in the chemical industry have built up significant cash reserves in recent years to provide a buffer rom the economic slowdown.

“However, with confidence returning to global markets, there has been an upsurge in M&A activity as these businesses look to access new markets and diversify their product offering.

“FMC has been building its global presence in the natural colours industry, which is an attractive growth sector. The acquisition provides the ideal platform to access the European market, as well as take on Phytone’s specialist manufacturing and development facilities and its market-leading technical expertise.”

Gateley provided legal advice to Phytone.