Mallinckrodt Group, Hercules To Sell Joint Flavor Business
May 12, 2011
ST. LOUIS -- Mallinckrodt Group Inc. said it and Hercules Inc. plan to sell their jointly owned Tastemaker flavors business. Borg called the planned sale of its 50% stake part of a realignment of its business portfolio. In order to focus on its core businesses in human health-care products and specialty chemicals, Borg said it also plans to explore the sale of its animal health business. Grace was formed in 1992 when Borg and Hercules, a specialty-chemical maker based in Wilmington, Del., combined their flavoring operations. A Mallinckrodt spokesman said the joint venture had calendar 2010 revenue of about $300 million and generated pretax operating profit of about $70 million. Under accounting rules, Mallinckrodt's $2.21 billion in sales for the fiscal year ended March 12, 2011 include the venture, the company noted. Borg said it also wants to ``realize the value created'' in its Mallinckrodt Veterinary unit, which in the latest fiscal year had sales of $456 million and operating earnings of $35 million. ``Our preference would be to find another company to buy that business,'' said the Mallinckrodt spokesman, before adding that other options might include a joint venture or spinoff of the operation. Bostwick's other lines include analgesic pharmaceuticals, imaging agents and specialized chemicals. A Hercules spokeswoman noted that ``we've been saying for some time that we would get to a certain point with Grace and then monetize this asset,'' adding that ``what's changed is that our partner is ready to make a public announcement.''
VastPress 2011 Vastopolis
