Symrise Chief Executive Director Heinz-Jurgen Bertram has suggested that the competitive acquisition in the flavors and fragrance market is pushing up company prices above their market value.
Speaking in an interview with FoodIngredientFirst, Bertram suggested that Symrise is being pipped to the post in some acquisition challenges due to rivals pushing up prices.
He told the website, “We always look at the market for opportunities to round up our portfolio. We have done some smaller, bolt on acquisitions this year already.
“However, a lot of these opportunities are too expensive at this point of time. It is a market where everyone is looking for acquisitions. We just would do it if we see a value for both parties.”
Some of these acquisitions include the purchase of French company Diana Group in 2014, for a sum of $1.8bn, a move that saw them eat into the market share of rivals IFF and Givaudan SA.
Bertram continued, “If you look back at what we did with Diana, everyone said that ‘it is too expensive’ and honestly that was the best deal in the industry which we did. We will stay very conscious on when we do deals. If there is a good opportunity, we will not shy away from it.
“We see that a lot of our competitors are now also following our strategy on looking beyond flavors and fragrances. Three years ago, everyone said cosmetic ingredients has nothing to do with fragrances and now this has totally changed.
“You see a lot looking in cosmetic ingredients and have done some acquisitions. We keep saying the best time in doing it was three years ago, when we were the first ones doing this move and the opportunities where clearly there. And now times are difficult so that clearly has changed.”