Symrise to Acquire Sensient's Fragrance Business Unit
Symrise AG signed an acquisition agreement with Sensient Technologies Corporation (Milwaukee, USA) to acquire its flavors and fragrance chemicals operations. These operations encompass a diverse range of aroma molecules and fragrances from natural and renewable sources.
In fiscal year 2019, the business unit generated approximately EUR 77 million in revenue. Through the acquisition, Symrise will strengthen its backward integration and expand its leading position as a supplier of fragrance components, which are increasingly in demand, particularly in personal and home care products.
Symrise will also gain access to additional customers and strengthen its presence, particularly in EAME and Latin America. Symrise plans to strengthen its production footprint in Spain through targeted investments in the Granada production facility to be acquired.
Symrise AG CEO Dr. Heinz-Jürgen Bertram stated: "We continuously pursue strategic opportunities to advance our objectives in targeted growth segments and take decisive action during challenging times. With the Sensient activities, Symrise is expanding its fragrance components portfolio and thereby enhancing its competitive strength in creating fragrance compositions.Given the growing importance of natural and renewable raw materials for the fragrance industry, the new product range ideally complements our existing portfolio.
Through this acquisition, we are once again fully delivering on our strategic priorities. While continuing to grow, we are simultaneously strengthening our leading position in fragrance components and green chemistry," he said.Sensient's flavors and fragrance chemicals business unit was part of Sensient's Flavours & Extracts group. The unit maintains long-standing business relationships with local, regional and global customers from the consumer goods industry. Supply is sourced from production facilities in Spain and Mexico.
Specialty aroma molecules and fragrance solutions are derived principally from renewable raw materials such as pine oil and citrus by-products, among others. The portfolio will strengthen Symrise's product range with unique fragrance components used in applications such as perfumes, shampoos, soaps, detergents and antiperspirants.
Through the acquisition, Symrise will not only significantly expand its renewable components portfolio, but also strengthen the green chemistry value chain, which includes various downstream products derived from sustainable agricultural sources.
Symrise plans to combine the research and development capabilities and production capacity of Sensient's flavors and fragrance chemicals operations with its own at its Granada facility. Over a three-year period, targeted investments will be made to expand the Granada region and make it the second largest fragrance components and compounds compounding facility in EAME.
Paul Manning, President and CEO of Sensient, stated: "We are pleased to transfer our flavors and fragrance chemicals operations to Symrise, an exceptionally strong and capable organization. This enables us to focus on our strategic priorities."
Both parties agreed to keep the acquisition price confidential. The transaction is subject to compliance with antitrust and regulatory approvals and other customary closing conditions.
