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Analyzing the Symrise-Manheimer-Intercontinental Deal
Posted: October 13, 2008
Reported by Jeb Gleason-Allured, Editor
It's official: Symrise has acquired Manheimer Fragrances and Intercontinental Fragrances. The moves strengthen Symrise's air care capabilities, particularly on the core lists of key candle customers. Interestingly, Kerry's natural products business is not part of the deal. The purchases are expected to impact fiscal 2009 results. There is talk about the industry of another purchase, but nothing has been confirmed as of press time.
The news comes after weeks and months of rumors and further underscores the consolidation of major industry players. The question is, with unsteady world markets, do companies have accessible capital to complete more deals in the foreseeable future? And, if so, which companies?
Meanwhile, Symrise has plans to open a global air care center in the United States. By all accounts, the company is now in the very top tier of fragrance suppliers/marketers to the $300 million US air care market. Symrise's overall share of the US fragrance market has also grown with the moves.
While Manheimer's activities are primarily US-based, Intercontinental brings with it modest footholds in Asia, Latin America and Europe. An official release notes, "Intercontinental Fragrances generated sales of $16 million," adding, "In 2007, Manheimer Fragrances had sales of $40 million."