Symrise has signed a purchase agreement with Sensient Technologies Corporation (Milwaukee, USA) to acquire its fragrance and aroma chemicals activities. These activities consist of a wide range of aroma molecules and fragrances from natural and renewable sources.
During fiscal year 2019, Sensient’s fragrances business unit generated revenues of approximately €77 million.
With the acquisition, Symrise will strengthen its backward integration and broaden its leadership position as a supplier of fragrance ingredients which are increasingly demanded for use, especially in personal and home care products. Symrise will furthermore gain access to additional customers and strengthen its presence in EAME and Latin America in particular. Going forward, Symrise also plans to strengthen its manufacturing footprint in Spain with targeted investments in the manufacturing site in Granada which will be acquired.
A bold move in challenging times
“We constantly screen strategic opportunities in continuation of our ambitions in certain growth segments and make bold steps in challenging times. With Sensient’s activities, Symrise is expanding its range of fragrance ingredients and will boost its competitiveness in the creation of fragrance compositions. In view of the increasing importance of natural and renewable raw materials for the fragrance industry, the new product range ideally complements our current portfolio. We are convinced that we will once more fully deliver on our strategic priorities with this acquisition. We drive growth while at the same time strengthen our leadership position in fragrance ingredients and green chemistry,” says Dr Heinz-Jürgen Bertram, CEO of Symrise.
Expanded renewable ingredients portfolio
The Sensient fragrances and aroma chemicals business unit has been part of Sensient’s Flavors & Extracts group. The unit holds longstanding business relationships with local, regional and global customers from the consumer goods industry. It supplies out of manufacturing sites in Spain and Mexico. The Sensient aroma molecules and fragrance solutions are mainly derived from renewable raw materials such as pine oil and citrus by-products amongst others. The portfolio will strengthen Symrise’s product line with unique fragrance ingredients used in applications such as perfumes, shampoos, soaps, detergents and antiperspirants. Through the acquisition, Symrise will not only be able to significantly expand its renewable ingredients portfolio, but to also increase its green chemistry value chain which includes various downstream products coming from sustainable cultivated sources.
Impressive plans for growth
At the site in Granada, Symrise plans to combine the R&D competencies and manufacturing capacities of Sensient’s fragrance and aroma chemicals activities with parts of its own activities. Over a period of three years, targeted investments will be made to expand the Granada site and make it the second largest compounding facility in EAME for fragrance ingredients and compounds.
Paul Manning, chairman, president and CEO of Sensient, comments: “We are pleased to be able to transition our fragrances and aroma chemical business to Symrise, an extremely strong and capable organisation. This allows us to focus on our strategic priorities.”
Both parties agreed to keep the purchase price confidential. The transaction is subject to satisfaction of antitrust and regulatory approvals and other customary closing conditions.
