Symrise: Two new acquisitions make the company ...
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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.
About Symrise
Symrise is a global supplier of fragrances, flavorings and raw
materials and active ingredients for the perfume, cosmetics and food
industry.
Its sales of ¤1.27 billion in 2007 place the company among the top
four in the international flavors and fragrances market.
Headquartered in Holzminden, Germany, Symrise is represented in more
than 30 countries in Europe, Asia, the United States and South
America.
With more than 40 first patent applications per year, Symrise is one
of the most innovative manufacturers on the market. Used by
manufacturers of perfumes, cosmetics and foods, our products are an
inseparable part of daily life. At Symrise we combine an awareness of
consumer trends with cutting-edge technologies, focusing on
innovative fashion and lifestyle products that have additional
practical value for the consumer. Symrise - always inspiring more.
www.symrise.com
Contact: Katja Derow, red roses communications, phone: +49 40 46 96
770-10, e-mail: k.derow@redroses-pr.com
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Symrise AG
Mühlenfeldstraße 1 Holzminden Germany
WKN: SYM999; ISIN:
DE000SYM9999; Index: MDAX, TecDAX;
Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Freiverkehr
in Bayerische Börse München,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr
in Börse Berlin,
Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart,
Prime Standard in Frankfurter Wertpapierbörse;
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