DSM and Firmenich have entered into a merger agreement to become a leading supplier of nutrition, beauty and wellbeing products.
The new company, called DSM-Firmenich, will bring together DSM’s Food & Beverage and Firmenich’s Taste & Beyond businesses. DSM-Firmenich will help to further accelerate innovation and generate new growth opportunities for customers.
The Dutch-Swiss business will be active in four areas, including food and beverage; perfumery and beauty; health, nutrition and care; and animal nutrition and health.
The combined companies anticipate organic sales growth of 5% to 7% per year and pretax synergies of around €350 million in adjusted EBITDA per year by 2026. This includes a €500 million annual revenue profit particularly from combining DSM’s Food & Beverage and Firmenich’s Taste & Beyond businesses.
In total, DSM shareholders will own 65.5% of DSM-Firmenich, while Firmenich’s shareholders will own the rest of the shares and will receive €3.5 billion in cash, which is subject to potential adjustments.
DSM’s co-CEOs, Geraldine Matchett and Dimitri de Vreeze, commented: “We are honoured to propose the combination of DSM and Firmenich, and the opportunity to bring together 28,000 passionate people with a common commitment to enable our customers to realise their ambitions as we better the health and wellbeing of people and the planet”.
They continued: “Together DSM-Firmenich will enjoy complementary capabilities, including one of the largest creation communities in the industry, enabling us to unlock new opportunities for customers as well as position us to deliver enhanced long-term growth and shareholder value, sustainably. By coming together, we will establish a company where anyone, anywhere in the world, wishing to make a positive impact should aspire to work.”
Firmenich’s CEO, Gilbert Ghostine, added: “This is the natural next step in Firmenich’s evolution. We are excited to build on Firmenich’s tradition of entrepreneurial excellence and create a global leader that will be able to bring breakthrough innovation and technologies to our customers, addressing the most pressing needs of consumers. DSM shares our purpose-led values and, like us, creates value for its customers through its science-based approach and pioneering technologies, making a real difference to people and planet.”
DSM-Firmenich will have a dual headquarters in Kaiseraugst, Switzerland and in Maastricht, the Netherlands.
The merger, which is subject to customary conditions, is expected to be finalised in the first half of 2023.
By Rafaela Sousa
Source: foodbev.com
Temperature-controlled storage and logistic solution provider, Emergent Cold LatAm, has opened ‘Chile’s largest’ frozen food warehouse. Located in Talcahuano, a region renowned for its seafood and fruit production and exports, the warehouse represents a strategic enhancement of the local cold chain infrastructure.
Never Never gin will be sold through Asahi’s alcohol division, Carlton & United Breweries (CUB). According to the company, the acquisition – which won’t impact daily operations – will enable Never Never’s premium gin to reach a wider customer base while enhancing support and product offerings for existing customers.
Coca-Cola Europacific Partners (CCEP) announced today the forthcoming departure of Nik Jhangiani, senior vice president and chief financial officer, with plans underway to identify his successor. Jhangiani will be stepping down to assume the role of CFO at Diageo later this year.
