Symrise AG expands in the Scent & Care segment through acquisition of US-based Pinova Holdings, Inc.
• Acquisition of operational companies Pinova and Renessenz
• Complementary acquisition to further strengthen the ingredients business, in particular for the perfume and cosmetics industry
• Leading supplier of ingredients from renewable sources
• Expansion of forward integration as menthol supplier
• Purchase price at US$ 397 million
Symrise AG is strengthening its activities in the Scent & Care segment with the acquisition of Pinova Holdings, Inc. (“Pinova Holdings”). Headquartered in Brunswick, Georgia, USA, Pinova Holdings is a leading supplier of ingredients from natural and renewable sources used mainly in the production of perfumes, fragrances and oral care products. With this acquisition, Symrise is expanding its range of fragrance ingredients and will thus boost its competitiveness in the creation of fragrance compositions. Moreover, the company is extending its forward integration in menthol to include specialty cooling substances, which are seeing increased use in combination with menthol-based products. Symrise is acquiring Pinova Holdings for US$ 397 million. Subject to conditions to be met within 12 months, the seller will receive a premium of US$ 20 million.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: "With the acquisition of Pinova Holdings, which owns the operating companies Pinova and Renessenz, we are taking a big step in the growth of our Aroma Molecules business. In view of the increasing importance of natural and renewable raw materials for the fragrance industry, the product range ideally complements our current portfolio. Pinova Holdings has recognized expertise and is very well positioned in that area. In addition, Pinova Holdings will broaden our portfolio of ingredients in Oral Care as well as some attractive new market segments. At the same time, the company will benefit from our global presence and sales structure as well as our R&D expertise."
Complementary product portfolio based on natural ingredients
The product portfolio of Pinova Holdings comprises numerous specialized products in three business segments. In the Fragrance Ingredients segment the company is a leading supplier of fragrances derived from natural and renewable raw materials, including products based on wood, orange oils and paper production by-products. Pinova Holdings will thus complement the existing portfolio of Symrise. As a result, the Group will have access to major and high-volume platforms for fragrance ingredients.
In the Sensory Ingredients segment, Pinova Holdings main focus is on cooling substances used in combination with menthol-based products to enhance the cooling effect. They are used in the manufacturing of oral care products, chewing gum and beverages, among other areas. Symrise is one of the global leaders in the production of synthetic L-menthol, and with this acquisition is substantially strengthening its competitiveness in this particular field.
With the integration of the third business segment, Performance Specialties, Symrise will add attractive new product segments and clients to its portfolio, focusing on technical applications.
Established relationships with global customers
Pinova Holdings has close customer relationships with leading global companies in the consumer goods industry, including – similar to Symrise – many long-term strategic partnerships. The company has manufacturing operations at three locations: Brunswick and Colonel’s Island, Georgia, USA, and in Jacksonville, Florida, USA. In the fiscal year 2014, Pinova Holdings recorded sales of US$ 287 million with a workforce of about 400 employees. In the same period, the adjusted EBITDA amounted to US$ 37.4 million.
Subject to regulatory approval, the deal is expected to close at the beginning of 2016. Symrise plans to move forward quickly with the integration of Pinova Holdings, expecting to achieve annually synergy effects worth € 20 million by 2020.
Symrise is a global supplier of fragrances, flavorings, cosmetic base materials and substances, as well as functional ingredients. Its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements and pet food.
Its sales of more than € 2.1 billion in the 2014 fiscal year place Symrise among the top three companies in the global flavors and fragrances market. Headquartered in Holzminden, Germany, the Group is represented in over 40 countries in Europe, Africa, the Middle East, Asia, the United States and Latin America.
Symrise works with its clients to develop new ideas and market-ready concepts for products that form an indispensable part of everyday life. Economic success and corporate responsibility are inextricably linked as part of this process. Symrise thus takes sustainability into account in every part of its corporate strategy. The company was awarded the German Sustainability Award in 2012. In 2013, Symrise was certified as a “Green Company” by DQS.
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