In order to create a leading creativity and innovation partner in nutrition, beauty, and well-being, DSM and Firmenich have announced that they have signed a business combination agreement.
With the merger, DSM’s health and nutrition portfolio will be combined with Firmenich’s top fragrance and taste businesses. The new company will be made up of four profitable, complementary businesses: nutrition, taste, texture, and aroma, and it will have an annual run-rate synergy potential of €350 million adjusted EBITDA. In the medium term, yearly sales growth is expected to range from 5 to 7 percent.
The combined businesses will continue to have two headquarters: one in Switzerland and one in the Netherlands.
With a focus on sustainability, health, and well-being, DSM-Firmenich will be better equipped to anticipate and meet the requirements of today’s aware consumers.
The CEO of Firmenich, Gilbert Ghostine, adds, “This is the logical next phase in Firmenich’s progress. We are thrilled to continue Firmenich’s legacy of entrepreneurial brilliance and establish a world leader that will be able to provide our clients with cutting-edge innovations and technology that will answer the most urgent demands of consumers. DSM, like us, generates value for its clients through a science-based methodology and cutting-edge technology, positively impacting both people and the environment. DSM shares our purpose-driven values. The idea that a new industry leader will be shaped by Firmenich’s legacy and develop for a better future excites me.