Symrise buys fragrance maker Pinova

Symrise buys fragrance maker Pinova

Germany-based fragrance and flavors producer Symrise is buying US fragrance ingredients make Pinova in a $397 million deal from buyout firm TorQuest. The purchase is part of a move into plant-based ingredients for its fragrance and flavors division.

The deal comes as the importance of natural and renewable raw materials continues to grow as consumer goods makers prefer these over petro-chemical-based ingredients. Indeed Symrise, which has a focus on plant-based substances, moved into the ingredients market to have better control over manufacturing processes.

Created in 2010, Pinova came about following TorQuest’s acquisition of Ashland’s refined wood rosin and natural wood terpenes unit when it was combined with LyondellBasell’s Flavors & Fragrances business, now called Renessenz. Symrise has purchased the company at a price that equals 11.1 times Pinova’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $37.4 million. To put it in context this is a multiple of 17.3 that Symrise is trading at, and 12.7 for rival IFF.