Firmenich and DSM announce merger to expand business plans

Firmenich and DSM have entered into a business combination agreement to establish a new creation and innovation company, called DSM-Firmenich.

Swiss company Firmenich is the world's largest privately-owned fragrance and taste company, known for creating fragrance for brands including Calvin Klein, Gucci and YSL. DSM is a Dutch-Swiss corporation that specialises in personal care, health, nutrition and bioscience.

The partnership will bring together Firmenich's perfumery and taste businesses with DSM's health and nutrition portfolio.

The company will have four high-performing and complementary businesses across Perfumery & Beauty, Health, Nutrition & Care, Food & Beverage and Animal Nutrition & Health.

Firmenich's global perfumery and ingredients business will expand further into beauty through the addition of DSM's personal care and aroma business. The merger of DSM-Firmenich aims to further accelerate innovation for the industry and generate new growth opportunities for customers.

Additonally, DSM-Firmenich will bring together both companies' commitments to sustainability across the value chain to help to drive environmental, social and governance leadership globally.

Once the merger is completed, the company expects mid-single-digit organic sales growth moving to the 5%-7% range over the medium term and high single-digit adjusted Ebitda growth.

Patrick Firmenich, Chairman of Firmenich, said: "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."

Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, said: "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."