Givaudan To Acquire Quest International

Givaudan has signed an agreement with UK-based Imperial Chemical Industries PLC, to acquire its fragrance and flavor business, Quest International for $2.2 billion.

According to company officials, the Quest acquisition will extend Givaudan’s leadership position in all strategic segments of the fragrance and flavor industry. Integrating Quest’s unique set of talent, creativity, products and technology will result in a unique platform to serve customers and create a potential for accelerated growth.

Quest was founded in 1905. It became part of ICI in 1997 through an acquisition from Unilever. The company is headquartered in Naarden, the Netherlands and is a fully owned subsidiary of the ICI Group. Quest is one of the leading players in the global flavour and fragrance market with a turnover of $1 billion in 2005. Quest currently employs around 3,400 people.

According to Givaudan executives, this acquisition is fully in line with the company’s strategy to focus on developing markets and to capture opportunities in key segments and at key clients. It will strengthen Givaudan’s current leadership and accelerate future growth, especially in important markets of Asia Pacific, Latin America, Eastern Europe and Africa and
the Middle East.

The transaction is subject to regulatory approval. It is hoped that completion will take place during the first quarter 2007.

“Quest has regained momentum over the last three years thanks to the talent and commitment of its people,” said Gilles Andrier, chief executive officer of Givaudan. “Thus, we are very excited to have this unique opportunity of creating an unrivalled industry leader, building on the strength, momentum and common values of both companies.”

In fragrances, Givaudan will become the global market leader in fine fragrances and consumer products. Furthermore, it will expand the customer base and strengthen its position with existing clients. In flavors, Quest will complement Givaudan’s product offering and creates the potential for faster growth in the food service segment. In addition, the position with the top 100 food and beverage companies will be further enhanced.

The addition of Quest will strengthen Givaudan’s technology portfolio, by expanding the offerings of taste solutions for health and wellness and by adding flavor delivery systems. In fragrances, Quest will complement Givaudan’s creative image in fine fragrances and air care.

The transaction will also enable the company to significantly increase its research and development investments in order to provide its clients with breakthrough innovative solutions based on best-in-class consumer understanding methodologies. By applying Givaudan’s successful business model to an expanded sales, marketing, research and development base, the combined company will be well positioned to capture further growth in a globally, increasingly challenging business environment.

Jürg Witmer, chairman of Givaudan stressed: “Givaudan has traditionally been a driver of industry consolidation by taking advantage of value enhancing acquisition opportunities while still focusing on profitable organic growth.”