While terms of the deal have not been disclosed, Drom’s business would have represented approximately €110 million of incremental sales to Givaudan’s results in 2018 on a proforma basis.
“The acquisition of Drom is very exciting for Givaudan as it further asserts our leadership position in the Fragrance market globally and is fully in line with our strategic ambitions,” said Gilles Andrier, CEO of Givaudan. “Like Givaudan, Drom has a long heritage in fragrance creation and their capabilities and strong culture will fit perfectly with ours. We look forward to welcoming Drom’s employees to Givaudan and are confident that our combined capabilities will deliver a compelling valuable proposition for our customers across segments and in key markets.”
Maurizio Volpi, president of Givaudan’s fragrance division, called Drom “a much respected international fragrance house that has developed a strong customer base, in particular with local and regional customers, thanks to their creativity and excellent service levels.” He added, T”he complementary nature of both businesses will further enhance our capabilities in serving customers across all segments and geographies.”
Ferdinand and Andreas Storp, co-owners and presidents of Drom said they are are “very excited to have Givaudan as the new home for Drom. We are convinced that the combination with Givaudan represents an outstanding strategic fit and will allow Drom to further expand its customer reach and geographical footprint going forward.”
The planned acquisition remains subject to formal approvals from the relevant regulatory authorities. The transaction is expected to close in the third quarter of 2019.