Acquisitions Make Symrise an Air Care Power

Symrise is expanding its air care market expertise via two significant acquisitions in the U.S. On Sept. 25, 2008, Symrise agreed to take over Manheimer Fragrances. The acquisition is subject to the approval of anti-trust authorities. Three weeks prior to that, Symrise purchased Intercontinental Fragrances.

Together the acquisitons will cost about $100 million. These two moves make Symrise one of the leading fragrance suppliers for air fresheners in North America, according to the company. Next year, Symrise plans to create a global air care center in the U.S.

According to company estimates, the North American market for air care products—which include air fresheners and scented candles— exceeds $300 million and comprises 10% of the entire fragrance market in the U.S. Acquiring Intercontinental Fragrances and Manheimer Fragrances significantly increases Symrise’s overall share of the U.S. 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, and was founded by James Readhimer in 1975. It is predominantly active on the U.S. 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, NJ-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.

According to Symrise, both companies have recorded significant growth in recent years and are core-listed at key consumer goods companies in the U.S.

With these acquisitions, Symrise is also laying the cornerstone for a global air care center in the U.S. 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 U.S. is the most important growth region for our scent & care division,“ said 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.”

According to Achim Daub, global president, scent & care, one of Symrise’s goals is to further expand its U.S. market position through organic growth and strategic acquisitions.

“The two recent acquisitions will significantly strengthen our position on the increasingly important U.S. air care market.,” he said. “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 U.S. and make this expertise available to the international Symrise group.“

In 2008, the acquisitions will add about $12 million dollars to group sales, assuming closure of the Manheimer transaction towards the end of October.

More info: www.symrise.com