Acquisition to propel Symrise's US growth
the acquisition of Chr. Hansen's North American flavors unit as a
springboard for greater US growth.
The company, which yesterday announced an agreement to buy the Danish company's flavors business for an undisclosed sum, said that the deal would finally give it the critical mass it had lacked in the US market, adding "significant production capacity in North America". "The purchase of Chr. Hansen's flavor business is in line with Symrise's long-term strategy for selecting intelligent acquisitions that complement our product portfolio," said CEO Dr. Gerold Linzbach. "This is our biggest acquisition to date. It will strengthen Symrise's current industry position and accelerate our growth opportunities." Although it is headquartered Germany, Symrise operates across the globe, with 31 sites in Europe, Asia, the United States and South America. It has seen strong performance from emerging markets in recent times, but today's message that North America is a strategic priority is the second it has issued this year so far. In January the company signed an agreement with the The Ingredient Company to build its distrubution of ingredients to the Canadian market. Chr Hansen's flavors division saw sales of around US$70m (€50m) in 2007, the majority of which were in the US market. Dr. Heinz-Juergen Bertram, global president of Symrise's flavor and nutrition division, added that the "client structure and core competences of both companies are a perfect match." "Chr. Hansen offers us excellent research and application expertise and has technologies which complement our equipment. Combining our strengths will create new market possibilities and business models for us." The businesses bought by Symrise are based in Mahwah, NJ, Elyria, OH and Milwaukee, WI, and sell flavors to a wide range of US customers, including both packaged food producers and food service groups. The companies expect the sale to be completed by April 2008, following approval from the US regulators. Symrise is one of the world's top four flavors and fragrances groups, with global sales in 2007 - published just yesterday - in excess of €1.2m in 2007. Symrise's Flavor & Nutrition division posted a sales increase in local currencies of 5.8 per cent to €603.2m, and a 21.6 per cent rise in EBITDA to €137.4m. The company has attributed the strong result for flavours in 2007 to an increase in sales, with its Taste-for-Life range, intended to allow for less sugar, salt and fat without impairing taste, aiding the performance of both sweet and savoury divisions. According to Leffingwell and Associates, the global flavours and fragrance market it worth an estimated US.$19.9 bn. Flavours are thought to make up just under half of this, and North America alone to account for just over a third.