Subject to regulatory approval, the acquisition should finalise in the third quarter of this year.
‘It further asserts our leadership position’
Gilles Andrier, CEO of Givaudan, said: “The acquisition of Drom is very exciting for Givaudan as it further asserts our leadership position in the fragrance market globally.”
The buy will see Givaudan gain Drom manufacturing facilities in China, Germany, Brazil and the US, along with close to 500 employees.
Maurizio Volpi, president of Givaudan’s fragrance division, said: “Drom is 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. The complementary nature of both businesses will further enhance our capabilities in serving customers across all segments and geographies.”
Andrier added: “…Drom has a long heritage in fragrance creating and their capabilities and strong culture will fit perfectly with ours.”
Terms were not disclosed but Givaudan said Drom’s business would have added a forecasted €110m in incremental sales to its 2018 results.
In May, this year, Givaudan acquired German-based AMSilk – an industrial supplier of vegan silk biopolymers – to assist the scale-up of its Active Beauty division.
It also finalised its acquisition of French natural ingredients for fragrances specialist Albert Vieille in the same month – a move Givaudan said would enable the company to expand further into the natural space. The Albert Vieille acquisition contributed €4.5m in sales to Givaudan’s first-half 2019 results released in
In September last year, Givaudan also completed its acquisition of Naturex – a buy that started out as a minority stake acquisition - that eventually contributed €5.4m to its fragrance division in the first-half of 2019. It also acquired Expressions Parfumées.
Givaudan said “targeted acquisitions” would continue to fuel its overall 2020 growth strategy.