Symrise Amongst the Degussa Pack

Symrise is the fourth largest maker of flavours and fragrances in the world with sales of $1.39 billion last year and is looking to grow.

Flavours giant Symrise has said that it is in the running for Degussa’s flavours business, as bidding continues into its second round. Spokesperson for Symrise Katja Derow confirmed to FoodIngredientsFirst that the company, which had hinted at acquisitions earlier this year, is continuing in its quest for Degussa. Symrise is the fourth largest maker of flavours and fragrances in the world with sales of $1.39 billion last year and is looking to grow.

Derow said that the “Degussa flavours business fits perfectly into ours.” She believes that it should be clear in the next six weeks what will happen with Degussa. Further details, such as the other companies involved in the bidding and the size of the Symrise bid are being kept well and truly under wraps, also from Degussa themselves. When asked, Degussa spokeswoman Hannelore Gantzer would only reveal that the company would hope to conclude transactions by the end of the year. Rumors are that there are seven companies left in the hunt including Kerry, Cargill and DSM. Back in April both Kerry and DSM were believed to have missed out on the acquisition opportunity of Chr. Hansen, which eventually went to private equity PAI Partners for $1.34 billion.

Earlier this month it had been reported that Degussa had contacted about 80 potential investors for its food ingredients business, which may be sold in parts. Degussa AG had already offloaded its Fruit Systems business to private equity, Speyside Equity LLC in February. The food ingredients business is being sold as it is believed to be too small to be competitive. It is being valued in the region of 750 million euros.

Yesterday, Danish ingredients giant Danisco reported that the lower growth that we are witnessing in the ingredients market, notably in Europe, has created acquisition opportunities, and Danisco has been a significant player over the past year. Danisco said that it expects to realise sales and costs synergies of up to DKK 200 million from this year's acquisition of enymes producer Genencor. Coupled with Genencor's own growth forecast Danisco said that this means that return on invested capital in the third full year after the acquisition is expected to exceed the capital cost (WACC) of 7.5%, thereby fulfilling financial targets.