JW Childs Acquires Monsanto's NutraSweet Sweetener Business

J.W. Childs Equity Partners II, LP, a Boston-based private equity firm with experience in the food, beverage and food ingredient industries, has signed a definitive agreement to acquire Monsanto Co.'s sweetener ingredient business, which includes NutraSweet sweetener. Under terms of the agreement, Monsanto will receive $440 million in cash for the business. All current employees of the business will be offered employment with the new company formed by J.W. Childs.

NutraSweet, headquartered in Chicago, IL, is the most widely recognized aspartame sweetener brand name in the world. Introduced in 1981, it now has regulatory approval in more than 100 countries on six continents. It is used in more than 5,000 food and beverage products.

"NutraSweet's world-class employees are credited with the best quality, service and delivery of aspartame in the world. We look forward to building upon NutraSweet's heritage of technological leadership, innovation and great product quality with an additional focus on developing our next generation high intensity sweetener, neotame," says Nick E. Rosa, a senior executive at Monsanto who will become CEO of the new NutraSweet Co.

"We are excited about this acquisition and intend to put the necessary resources toward positioning NutraSweet for the future,'" said Tim Healy, managing director of JW Childs. "NutraSweet will be able to draw upon JW Childs' experience to capitalize on growth opportunities."

Monsanto also announced that it has signed a definitive agreement to sell for $67 million in cash its equity interests in two European joint venture companies, NutraSweet AG, and Euro-Aspartame SA, to Ajinomoto Co., Inc., Monsanto's long-standing partner in the joint ventures. The sale to Ajinomoto includes several strategic agreements to ensure existing customers will continue to receive services in an efficient and quality manner. Closing of the sale of Monsanto's equity interests in these joint ventures will occur concurrently with the closing of the transaction with Childs.

Upon closing of the transactions with Childs and Ajinomoto and the previously-announced sale of its biogums business for $685 million in cash to Hercules 2000, LLC, Monsanto will have completed execution of its strategic restructuring plan announced July 1, 1999, that included selling its consumer and bulk food ingredients businesses. On March 20, 2000, Monsanto announced the closing of the sale of its table top sweetener business to Merisant Company for $570 million in cash. Proceeds from the sale of all of the businesses included in the plan will be used to pay down debt and for other corporate purposes.

"We've delivered on the restructuring commitments we made in 1999 in order to realign our long term strategies. Proceeds from these divestitures will further strengthen our balance sheet, and will enable us to focus on the areas critical to achieving our near- and long-term growth targets," said Gary Crittenden, Monsanto's chief financial officer.

Edited by Wendy Reynolds