Firmenich (Geneva) has agreed to purchase Danisco's (Copenhagen) flavor business for DKK 3.36 billion. Assuming all relevant approvals are attained, the deal should close by the end of June. The agreement further joins the companies in a partnership for serving the food industry. The Danisco business affected generated revenues of DKK ~1.5 billion in the last fiscal year, some 2-3% of the world market. The segment employs 800 (less than 8% of the company's staff). The purchase bolsters Firmenich's citrus, naturals and dairy capabilities, while expanding its expertise in vanilla, ice cream and beverage bases.
Of the news, Firmenich CEO Patrick Firmenich said, "This acquisition reinforces our position as the leading innovation partner for our clients and a top player in both natural and synthetic ingredients for the flavor and fragrance industry. This is a unique position that will enable us to further leverage out talent for turning consumer aspirations and client needs into creative and successful market products."
In related news, Firmenich will launch an innovation center in southern France focusing on natural F&F extracts.