Givaudan to Acquire drom Fragrances

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Givaudan has announced that it’s set to acquire German perfume house drom Fragrances.

“The acquisition of drom is very exciting for Givaudan as it further asserts our leadership position in the fragrance market globally and is fully in line with our strategic ambitions. Like Givaudan, drom has a long heritage in fragrance creation and their capabilities and strong culture will fit perfectly with ours. We look forward to welcoming drom’s employees to Givaudan and are confident that our combined capabilities will deliver a compelling valuable proposition for our customers across segments and in key markets,” said Gilles Andrier, CEO of Givaudan.

Headquartered near Munich, drom has been creating fragrances for consumers products and fine fragrances since 1911. The company currently employs 489 people globally and has manufacturing facilities in China, Germany, Brazil and the United States.

Terms of the deal weren’t disclosed, but drom’s business would have represented approximately EUR 110 million of incremental sales to Givaudan’s results in 2018 on a proforma basis. Givaudan will be funding the transaction from existing resources with the deal expecting to close in the third quarter of 2019, pending formal approvals from regulatory authorities.

Related: 2019 Leaderboard: Givaudan Focuses on 2020 Strategy

“drom is a much-respected international fragrance house that has developed a strong customer base, in particular with local and regional customers, thanks to their creativity and excellent service levels. The complementary nature of both businesses will further enhance our capabilities in serving customers across all segments and geographies,” said Maurizio Volpi, president of Givaudan’s fragrance division.