06.01.22
DSM and Firmenich this week announced that they have entered into a business combination agreement (BCA) to establish a “leading creation and innovation partner in nutrition, beauty and well-being.” DSM-Firmenich will bring together Firmenich's perfumery and taste businesses, world-class science platforms and associated co-creation capabilities with DSM's health and nutrition portfolio and renowned scientific expertise. The new company will have four high-performing and complementary businesses, each with leading positions and underpinned by world-class science.
Firmenich's global perfumery and Ingredients business will expand further into beauty through the addition of DSM's personal care and aroma business. These new combined businesses will be joined by DSM's high-performing health, nutrition and care and animal nutrition and health businesses.
DSM-Firmenich will benefit from complementary capabilities across fragrance, taste, texture and nutrition, fueled by world-class science and proprietary capabilities.
The merger of DSM-Firmenich will form a new global-scale partner to serve the food and beverage industry, combining DSM's food and beverage and Firmenich's “Taste & Beyond” businesses.
"DSM-Firmenich will bring together leading creativity and cutting-edge science and innovation. Together we will be able to better serve the needs of customers and deliver compelling growth and returns. However, successful mergers require more than complementary capabilities or compelling financials; they not only require balanced governance and a respect of the interests of all stakeholders, but they crucially require shared values. My colleagues and I are convinced we have all of those elements, and it is for this reason that the Supervisory Board of DSM concluded that this is truly a merger which is in the interest of all stakeholders,” said Thomas Leysen, chairman of the DSM Supervisory Board.
Patrick Firmenich, chairman of Firmenich, added: "The combination of DSM and Firmenich is transformational, and brings together two culturally aligned and iconic businesses, each with over 125 years' heritage of innovation. Our shared purpose and common values, combined with our highly complementary capabilities gives me confidence we can accelerate our growth further through innovation and new creations. I am confident that for all stakeholders of the future DSM-Firmenich business, the most exciting times are still to come."
According to Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, 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."
"This is the natural next step in Firmenich's evolution," added Gilbert Ghostine, CEO of Firmenich, added: 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. I am excited that the legacy of Firmenich will shape a new industry leader that will innovate for a better world."
Food & Beverage/Taste & Beyond, with combined revenues of €2.7bn, will form a global-scale partner to the food and beverage industry with extensive capabilities in taste, nutrition and functionality, according to the firms.
Health, Nutrition & Care, with revenues of €2.2bn, will continue its development as an end-to-end partner providing customized quality solutions that support the health of people at every life stage. It will aim to keep the world's growing population healthy through a broad portfolio of sustainable, science-backed innovative solutions, addressing consumers' health and lifestyle needs, for customers in the dietary supplements, early-life nutrition, pharmaceuticals, medical nutrition, nutrition improvement for the under-nourished, and medical devices markets
Animal Nutrition & Health revenues will be apprioximately €3.3bn
Firmenich's global perfumery and Ingredients business will expand further into beauty through the addition of DSM's personal care and aroma business. These new combined businesses will be joined by DSM's high-performing health, nutrition and care and animal nutrition and health businesses.
DSM-Firmenich will benefit from complementary capabilities across fragrance, taste, texture and nutrition, fueled by world-class science and proprietary capabilities.
The merger of DSM-Firmenich will form a new global-scale partner to serve the food and beverage industry, combining DSM's food and beverage and Firmenich's “Taste & Beyond” businesses.
"DSM-Firmenich will bring together leading creativity and cutting-edge science and innovation. Together we will be able to better serve the needs of customers and deliver compelling growth and returns. However, successful mergers require more than complementary capabilities or compelling financials; they not only require balanced governance and a respect of the interests of all stakeholders, but they crucially require shared values. My colleagues and I are convinced we have all of those elements, and it is for this reason that the Supervisory Board of DSM concluded that this is truly a merger which is in the interest of all stakeholders,” said Thomas Leysen, chairman of the DSM Supervisory Board.
Patrick Firmenich, chairman of Firmenich, added: "The combination of DSM and Firmenich is transformational, and brings together two culturally aligned and iconic businesses, each with over 125 years' heritage of innovation. Our shared purpose and common values, combined with our highly complementary capabilities gives me confidence we can accelerate our growth further through innovation and new creations. I am confident that for all stakeholders of the future DSM-Firmenich business, the most exciting times are still to come."
According to Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, 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."
"This is the natural next step in Firmenich's evolution," added Gilbert Ghostine, CEO of Firmenich, added: 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. I am excited that the legacy of Firmenich will shape a new industry leader that will innovate for a better world."
Beauty Operations
According to DSM-Firmenich, the Perfumery & Beauty oeprations, with combined revenues of €3.3bn, will be the foremost creator of positive fragrances and beauty products and a global aroma ingredients business that together have leadership in renewable, natural, proprietary biodegradable and biotechnology-derived ingredients. Firmenich's leading global perfumery and ingredients business will expand into beauty through the addition of DSM's personal care and aroma business to delight consumers with superior sensorial experiences and differentiated performance, delivering active benefits, addressing clean and hygiene, health & reassurance and emotion and well-being
Food & Beverage and Health
Food & Beverage/Taste & Beyond, with combined revenues of €2.7bn, will form a global-scale partner to the food and beverage industry with extensive capabilities in taste, nutrition and functionality, according to the firms.Health, Nutrition & Care, with revenues of €2.2bn, will continue its development as an end-to-end partner providing customized quality solutions that support the health of people at every life stage. It will aim to keep the world's growing population healthy through a broad portfolio of sustainable, science-backed innovative solutions, addressing consumers' health and lifestyle needs, for customers in the dietary supplements, early-life nutrition, pharmaceuticals, medical nutrition, nutrition improvement for the under-nourished, and medical devices markets
Animal Nutrition & Health revenues will be apprioximately €3.3bn