The expanded group – which brings to Naturex markets such as natural colouring agents, fruit and vegetable powders, pectins, functional ingredients, yeast and caffeine – expects to earn €28m before interest, tax and amortisation.

The deal will bring the ingredients business of Spain-based Natraceutical under the wings of Naturex.

Announcing the details of the deal, Naturex said the acquisition was worth €110m, 65 per cent of which is to be paid in shares via a reserve capital increase, the remainder paid in cash. Naturex says the deal will help the company double earnings from its 2008 income of €93.2m to €185m in 2009.