THE WHAT? DSM and Firmenich have announced that they have entered into a business combination agreement to establish a leading creation and innovation partner in nutrition, beauty and well-being.
THE DETAILS The combination will bring together Firmenich’s leading perfumery and taste business with DSM’s health and nutrition portfolio. The new company will be made up of four high-performing, complementary businesses: fragrance, taste, texture and nutrition and boast an annual run rate synergy potential of €350 million adjusted EBITDA, with annual sales growth pegged at 5 to 7 percent per year in the mid-term.
The combined companies will maintain two headquarters, one in Switzerland and one in the Netherlands
THE WHY? DSM-Firmenich will be able to better anticipate and to address the needs of today’s conscious consumers who prioritize sustainability, health and well-being.
Gilbert Ghostine, CEO of Firmenich, explains, “This is the natural next step in Firmenich’s evolution. We are excited to build on Firmenich’s tradition of entrepreneurial excellence and create a global leader that will be able to bring breakthrough innovation and technologies to our customers, addressing the most pressing needs of consumers. DSM shares our purpose-led values and, like us, creates value for its customers through its science-based approach and pioneering technologies, making a real difference to people and planet. I am excited that the legacy of Firmenich will shape a new industry leader that will innovate for a better world.”