Nutritional ingredients business Cognis continues to concentrate on core activities with the announcement this week that it has sold its Fragrances & Specialties business (Cognis F&S) to Japanese speciality chemicals business Kao Chemicals.
Kao Chemicals - that predicts consolidated net sales from Cognis F&S to reach Y15 billion (approximately €120 million) - said it intended to incorporate the business into its own aroma chemicals and fragrance business.
Commenting on the sale, Cognis chief executive officer, Antonio Trius said: "Cognis has successfully developed its Fragrances & Specialties business into a highly specialised and profitable niche player which achieved sales of €30 million in 2001".
Takuya Goto, President and CEO of Kao Corporation added: "This acquisition will enhance profitability of Kao's aroma chemicals business and benefit overall activities in our chemical products division towards achievement of profitable growth".
In 2002, Cognis reported sales of €3,1 billion and an operating profit before depreciation, amortisation and exceptional items (EBITDA recurring) of €393 million.
In 2001 Kao Chemicals' reported net sales for its chemical products business of €1 billion, contributing 17 per cent of the overall sales for the Kao group. In addition to supplying oleochemicals with natural fats and oils derived from coconuts and palm, Kao claims to supply over 1,000 kinds of speciality chemicals to a variety of industries.