Corbion divests frozen dough business to Frodo Baking Company

Dutch food ingredient firm Corbion has announced the divesture of its frozen dough business to Frodo Baking Company.

Corbion’s frozen dough business is located in East Rutherford, New Jersey, US.

According to the deal, Frodo Baking will retain the majority of employees of the acquired business and take over the operations with immediate effect.

The divesture of the frozen dough business is said to be in line with Corbion’s Advance 2025 strategy, which was announced last March.

In a statement, Corbion said: “Being the only (semi-)finished product line delivering to consumer outlets, whereas Corbion is a global leader in ingredients and strong in B2B markets, the frozen dough business’s fit with the new strategy was limited.”

The financial details of the deal have not been disclosed by either company.

Corbion Sustainable Food Solutions president Andy Muller said: “This divestment allows us to further increase our focus on our preservation and functional systems ingredients.

“And we can do so in full confidence that our colleagues in the frozen dough business will be better positioned to flourish in this growth market under the new owner, with a clear, singular focus.

“Finally, I would like to thank our colleagues from the frozen dough business for their valuable contribution to Corbion over many years.”

Last March, Corbion unveiled plans to exit the frozen dough market as it plans to focus on natural food preservation and lactic acid.

To capitalise on its leadership in the lactic acid business, the company also announced plans to build a new lactic acid plant at the existing Corbion site in Rayong Province, Thailand.