Firmenich to acquire Danisco Flavor Division
May 03, 2007
by Eric Schroeder
GENEVA, SWITZERLAND — Firmenich, the world’s largest privately-owned fragrance and flavor company, has signed an agreement to acquire the Flavor Division of Copenhagen, Denmark-based Danisco A/S for DKK 3.36 million ($611 million). Annual sales of the Danisco Flavor Division, which specializes in natural and nature-identical ingredients for the food, beverage and fragrance industries, are approximately DKK1.5 billion (around $273 million).
According to Firmenich, the acquisition will expand its product offering and market coverage, particularly in vanilla, ice cream and beverage bases, while reinforcing its position in citrus, naturals and the dairy segment.
Firmenich also will be creating an innovation center in the south of France, specifically designed to further develop its expertise in natural fragrance and flavor extracts
"This acquisition reinforces our position as the leading innovation partner for our clients and a top player in both natural and synthetic ingredients for the flavor and fragrance industry," said Patrick Firmenich, chief executive officer, Firmenich. "This is a unique position that will enable us to further leverage our talent for turning consumer aspirations and client needs into creative and successful market products."
According to Danisco, the divestment of the Flavor Division should be viewed as "a value-creating and forward-looking initiative."
"The new ownership will create a critical mass for the activity and the strategic partnership allows us to further capitalize on Danisco’s global sales and applications organization in close cooperation with Firmenich," Danisco said. "In addition, financial as well as managerial resources will be released with a view to increasing growth in Bio ingredients and Texturants and Sweeteners, both enjoying a strong technology platform and market position."
The transaction is expected to close by the end of 2007.