NETHERLANDS – Global food ingredient suppliers DSM and Firmenich have entered into a business combination agreement to establish a leading creation and innovation partner in nutrition, beauty and well-being.
Named “DSM-Firmenich”, the new business outfit will bring together Firmenich’s unique leading Perfumery and Taste businesses with DSM’s outstanding Health and Nutrition portfolio and renowned scientific expertise.
The new company will have four high-performing and complementary businesses namely fragrance, taste, texture and nutrition, each with leading positions and underpinned by world-class science.
With the merger, DSM’s Food & Beverage will be combined with Firmenich’s Taste & Beyond businesses while Firmenich’s world-leading global Perfumery and Ingredients business will expand further into Beauty through the addition of DSM’s Personal Care & Aroma business.
These newly combined businesses will be joined by DSM’s high-performing Health, Nutrition & Care and Animal Nutrition & Health businesses.
The combined company’s extensive global footprint will provide customers with access to an unprecedented network of R&D, creation and application capabilities, informed by local consumer preferences, across regional and local hubs around the world.
The merger of DSM-Firmenich will further accelerate innovation for the industry and generate new growth opportunities for customers, DSM said in a statement.
It further added that the merger will bring together both companies’ relentless commitment to sustainability across the value chain, and in doing so help to drive environmental, social and governance leadership globally.
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, commented: “We are honored to propose the combination of DSM and Firmenich, and the opportunity to bring together 28,000passionate people with a common commitment to enable our customers to realize their ambitions as we better the health and well-being of people and the planet.
Together DSM-Firmenich will enjoy complementary capabilities, including one of the largest creation communities in the industry, enabling us to unlock new opportunities for customers as well as position us to deliver enhanced long-term growth and shareholder value, sustainably.”
The combined business is expected to register an attractive annual run rate synergy potential of €350m (US$376 million) Adjusted EBITDA.
This includes a €500m (US$537 million) annual sales uplift particularly from combining DSM’s Food & Beverage and Firmenich’s Taste & Beyond businesses
DSM-Firmenich will have a dual headquarter in Switzerland (Kaiseraugst) and the Netherlands (Maastricht).
Furthermore, the company will have a holding company domiciled in Switzerland holding the seat of the principal in Kaiseraugst (CH) and listed on Euronext Amsterdam.
DSM’s shareholders are expected to own in aggregate 65.5% of DSM-Firmenich while the various Firmenich shareholders will own an aggregate 34.5% at inception.
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