Flavors and scents player Symrise has signed a purchase agreement with Sensient Technologies Corporation to acquire its aroma chemicals activities. These comprise a wide range of aroma molecules from natural and renewable sources, including citrus byproducts.
Both parties agreed to keep the purchase price confidential. The transaction is subject to antitrust and regulatory approvals and other customary closing conditions.
In fiscal year 2019, the business unit generated revenues of approximately €77 million (US$91.4 million).
With the acquisition, Symrise is looking to strengthen its “green chemistry” value chain, particularly in the Europe, Africa and the Middle East (EAME) region and Latin America.
“We constantly screen strategic opportunities in continuation of our ambitions in certain growth segments and also make bold steps in challenging times,” says Dr. Heinz-Jürgen Bertram, CEO of Symrise.
“In view of the increasing importance of natural and renewable raw materials for the fragrance industry, the new product range ideally complements our current portfolio. We are convinced that we will once more fully deliver on our strategic priorities with this acquisition,” he continues.
Focus on Spain and Mexico
The Sensient fragrances and aroma chemicals business unit has been part of Sensient’s Flavors & Extracts group. The unit supplies out of manufacturing sites in Spain and Mexico.
The Sensient aroma molecules and fragrance solutions are mainly derived from renewable raw materials such as pine oil and citrus by-products, among others.
Symrise plans to combine the R&D competencies and manufacturing capacities of Sensient’s fragrance and aroma chemicals activities with parts of its own at the site in Granada.
Over a period of three years, targeted investments will be made to grow the Granada site and make it the second largest compounding facility in EAME for fragrance ingredients and compounds.
“We are pleased to be able to transition our fragrances and aroma chemical business to Symrise,” says Paul Manning, chairman, president, and CEO of Sensient. “This allows us to focus on our strategic priorities.”
In previous developments, Symrise flagged that the COVID-19 pandemic has “accelerated the naturalness movement.” This growing awareness for trust and traceability relates to the food chain as a whole and has resulted in an increased demand for natural ingredient solutions.
“Transparency Triumphs” was recently pegged 2021’s Top Trend by Innova Market Insights, underscoring renewed interest in product development within this sphere.
