Symrise Buys Manheimer, Intercontinental

It's official: Symrise has acquired Manheimer Fragrances and Intercontinental Fragrances. The move strengthens its air care capabilities. Kerry's natural products business is not part of the deal. The purchases are expected to impact fiscal 2009 results. The full press release below:

Symrise: Two new acquisitions make the company one of the leading fragrance manufacturers on the US air care market Symrise acquires Intercontinental Fragrances and Manheimer Fragrances; plans for a global air care center in the US Fragrance and flavoring manufacturer Symrise is expanding its expertise on the air care market by means of two significant acquisitions in the US. On September 25, 2008, the corporation signed an agreement to take over Manheimer Fragrances. Three weeks prior to that, Symrise acquired Intercontinental Fragrances. These two moves make Symrise one of the leading fragrance suppliers for air fresheners in North America. In 2009, Symrise plans to create a global air care center in the US. The North American market for air care products – which include air fresheners and scented candles – amounts to over $300 million and comprises 10% of the entire fragrance market in the US. Acquiring Intercontinental Fragrances and Manheimer Fragrances significantly increases Symrise's overall share on the US fragrance market and strengthens the company’s position in the air care sector and on the scented candles market in particular. Intercontinental Fragrances specializes in developing and marketing fragrances for use in candles. The family-run company has its headquarters in Houston, Texas and was founded by James Readhimer in 1975. It is predominantly active on the US market and has smaller subsidiaries and locations in Asia, Latin America and Europe. In 2007, Intercontinental Fragrances generated sales of $16 million. Manheimer Fragrances was established in 1984 and acquired by Kerry Ingredients & Flavours in 2004. The Teterboro, New Jersey-based company does most of its business domestically. Its core competency is developing scents for candles and air fresheners. Manheimer Fragrances is also very successful in the field of certified natural organic and fair-trade certified fragrances. The company was the first fragrance supplier worldwide to receive organic and fair-trade certification. In 2007 Manheimer Fragrances had sales of $40 million. The Natural Products business of Kerry Ingredients and Flavours is not part of this transaction and will continue as normal under Kerry ownership. Both companies have enjoyed significant growth rates in recent years and are core-listed at key consumer goods companies in the US. With these acquisitions, Symrise is also laying the cornerstone for a global air care center in the US which will include and globally leverage its activities in research, development, production and global marketing of fragrance compositions for candles and air fresheners. "In addition to Asia, the US is the most important growth region for our Scent & Care division“, states Dr. Klaus Stanzl, President Scent & Care, North America. “Winning new industrial and retail partners will strengthen our market position in North America and accelerate our growth. The synergies of these two companies will make Symrise one of the leading North American suppliers of air care fragrances. Furthermore, having a larger portfolio of certified organic and fair-trade ingredients will help us meet our customers' growing demand worldwide for sustainable products." “One of our declared goals is to further expand our market position in the US – through both, organic growth and strategic acquisitions”, adds Achim Daub, Global President, Scent & Care. "The two recent acquisitions will significantly strengthen our position on the increasingly important US air care market. This market segment will also have a high priority for us on a global level. Starting in 2009, we will focus all of our air care activities in the US and make this expertise available to the international Symrise group.“ The Manheimer transaction is subject to the approval of the anti-trust authorities. The anticipated combined consideration for the transactions, which is partially contingent on the attainment of certain milestones, will be c $100 million. In 2008, the acquisitions will add c $12 million dollars to Group sales, assuming closure of the Manheimer transaction towards the end of October. After integration costs are taken into account, the Group EBITDA will not be materially impacted this year, but Group earnings will be enhanced in 2009. Integration will be completed in the first half of 2009.

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