Raisio strengthens food diagnostics

Growing Finnish food and animal feed company Raisio is to acquire all the shares of Swedish biotech company Diffchamb. The move marks a step forward in the Finnish company's overall aim to expand its Life Science unit business into food and animal feed diagnostics.

Raisio, that manufactures cholesterol-reducing stanol ester food ingredient Benecol through its Life Science unit, will pay €16.6 million for Diffchamb, a company that develops and manufactures equipment for foodstuff testing.

Further to a cash settlement this week, Diffchamb​, currently listed on the Stockholm Stock Exchange, will be consolidated into Raisio group figures from the beginning of the second quarter.

"The acquisition of Diffchamb provides Raisio Life Sciences with an excellent platform to build a strong global food diagnostics business,"​ said Raisio in a statement this week.

The Raisio group​ is divided into three business sectors: Raisio Chemicals, Raisio Nutrition and Raisio Life Sciences. In 2002 the Life Science unit contributed 3 per cent to the company's turnover. Raisio Nutrition, involved in foods, animal feeds, malt and grain starch, had the largest slice with 53 per cent of the total turnover, and Raisio Chemicals, responsible for latex binders and speciality chemicals, contributing 44 per cent.

Last month the company announced the sale of its almond paste business in Sweden to Scandibaker as part of its streamlining programme, including divestments of non-core businesses.