Symrise has submitted a binding offer and has entered into exclusive discussions with the owners of Diana Group with regards to the acquisition of Diana Group for €1.3 billion. Symrise believes Diana Group is one of the most attractive assets in the flavour and nutrition space. With the planned transaction, Symrise said it will significantly expand its position in the flavour and nutrition market, strengthen its backward integration and expand its activities into the highly attractive pet food market.
Diana is a supplier of organoleptic solutions based on natural ingredients, natural and functional food solutions and palatability enhancers for pet food. The company is headquartered in Vannes, France, and its operates own production facilities and sales offices in 23 countries in Europe, North and Latin America as well as Asia. With more than 2,000 employees, the company generated sales of ca. €425 million and an EBITDA margin of ca. 21 % in 2013.
“The proposed acquisition represents a major milestone for Symrise right after our 10th anniversary, and is fully in line with our strategic objective to further accelerate profitable growth,” said Dr Heinz Jürgen Bertram, chief executive officer of Symrise. “Diana Group is an impressive and highly profitable business with a strong complementary fit to our activities in the flavour and nutrition market. With Diana we will be able to significantly diversify our portfolio for natural ingredients, tap into new business segments, strengthen our raw material supply and meet the requests for traceability from our customers. The planned integration of Diana will create an unparalleled set-up which will offer us new opportunities for profitable growth beyond our current market and establish an excellent position to generate value in the future. We believe that a multiple of around 14 x EBITDA (2013) represents an attractive valuation given the quality of Diana’s product and customer base, its high margin characteristics, and the future growth prospects of the business.”
The joint activities of Diana and Symrise generate pro forma sales of nearly €2.3 billion with an EBITDA margin of more than 20 %. The acquisition will, said Symrise, create a unique and highly competitive platform which will allow the company to capitalise on market opportunities at an accelerated pace, intensify business with global key accounts and consumer goods companies and gain additional market share.
With its global network and the particularly strong footprint in emerging markets, Symrise believes it will enhance Diana’s regional presence in key growth regions. In addition, the company said that Diana will benefit from Symrise’s strong R&D capabilities in flavours, consumer health and life essentials, which will advance innovations in these key business segments.
