Renewables push: Firmenich to acquire French plant specialist DRT
Firmenich today announced it had entered into an exclusivity agreement with private investment firm Ardian, asset management and investment firm Tikehau Capital, and family shareholders to buy DRT – a specialised supplier of renewable and naturally-derived plant-based ingredients, mainly from pine trees. The acquisition included four production sites in France; two in the USA; two in India and one in China and provided access to DRT’s sustainable raw material supply chain, extraction and distillation capabilities and advanced innovation process.
Renewable and sustainable perfumery push
Gilbert Ghostine, CEO of Firmenich, said the acquisition of DRT would “further strengthen” Firmenich’s renewable and sustainable portfolio of perfumery and ingredients and bring “new capabilities” in cosmetics, as well as health and nutrition.
The move also reinforced Firmenich’s presence in France, Ghostine said – the company’s second-largest market in the world.
Laurent Labatut, CEO of DRT, said the two companies shared a “long-standing relationship” and said DRT considered Firmenich one of its “main partners”. The acquisition, therefore, enabled the two firms to merge innovation capabilities, opening new opportunities across global product portfolios.
Financial terms of the deal were not been disclosed but DRT had an annual turnover of more than €550m and employed more than 1,500 people worldwide. The companies said the deal remained subject to customary approvals and consultation of relevant employee representatives.
Ultra-natural potential across beauty and personal care
In September, last year, Firmenich acquired a 17% stake in French natural ingredients specialist Robertet, stating it would also consider taking a controlling interest if invited to do so.
Both acquisitions aligned well with the Swiss fragrance major’s focus on the ultra-natural trend. David Suffit Reedman, senior director of Fine Fragrance Development Europe at Firmenich, said the ultra-natural trend was taking a significant hold across several beauty and personal care categories and would take off in fine fragrance within two to five years.
“The main trend in the market is this quest and idea around ultra-natural; being really close to nature and this wish to be very true to life,” Suffit Reedman previously told CosmeticsDesign-Europe.
Firmenich's VP of business development for sustainability and naturals in perfumery Juliette Sicot-Crevet recently said augmented perfumery was the future of targeting the increasingly conscious consumer.