Givaudan SA said it has entered into negotiations with Agro Industrie Recherches et Développements (ARD) to acquire 100% of the shares of Soliance SA and its units, with the aim to build upon its existing active cosmetic ingredients business and enhance its current portfolio, including the fragrance division's work with natural molecules.
Soliance is currently a division of ARD. It provides cosmetic solutions to its international clients and partners and develops active ingredients derived from vegetable sources, microorganisms and microalgae. Soliance currently has two sites in France, located in Pomacle and Ile Grande, and employs 77 people.
“Soliance represents Givaudan’s first acquisition since that of Quest," said Gilles Andrier, Givaudan's CEO. "Its current portfolio of active cosmetic ingredients and strong process development and research capabilities fit well into the five strategic pillars of Givaudan.”
Michael Carlos, president of Givaudan’s fragrance division, added: “We expect Soliance to become an integral part of the fragrance division and bring significant contributions over the next few years, particularly in research and development. Soliance has a strong track record of identifying natural molecules, which can bring value to our customers and to their consumers.”
While terms of the deal have not been disclosed, the Soliance operations would have represented approximately CHF 25 million of incremental sales to Givaudan’s results in 2013 on a proforma basis. Givaudan plans to fund the transaction from existing resources. The transaction is expected to close in the second quarter of 2014, subject to the customary closing approvals and conditions which includes consultations with the employee representative bodies.