Swiss flavors and fragrances producer Givaudan is to buy Spicetec Flavors & Seasonings from US packaged foods company ConAgra Foods for $340 million. Spicetec has operations in Omaha, Nebraska; Carol Stream, Illinois and Cranbury, New Jersey, supplying customers mostly in North America. The transaction is expected to add around $185 million to Givaudan’s revenue on a full year basis.

Givaudan said the acquisition fits its 2020 strategy to expand its product offering and invest in high-growth markets. Spicetec’s additional capabilities would help to strengthen its portfolio of natural ingredients, flavors and taste solutions, it added.

The company plans to fund the purchase from existing resources. The transaction remains subject to antitrust approvals but is expected to close in the next two to three months.

As part of its 2020 strategy, Givaudan recently opened new laboratory facilities in Karachi, Pakistan, where it became the first global flavors company to establish a presence, and is currently also building a new innovation center in Switzerland.

Givaudan’s center in Kemptthal, being built at a cost of 120 million Swiss francs, is expected to open in 2019. Research areas will include organic chemistry, fermentation and biocatalysis, flavor creation and application science, as well as delivery systems.