Germany's Symrise to buy US perfume ingredients maker Pinova Holdings in $417-mn deal

Germany specialty organic chemicals maker Symrise yesterday struck a deal to buy US perfume ingredients maker Pinova Holdings from Canadian private equity firm TorQuest in a $417-million cash deal.
 
Symrise is paying $397 million and another $20 million subject to conditions to be met within 12 months.

Pinova is a leader in specialty chemicals manufactured from natural and renewable feedstocks. 

Pinova was created in 2010 when TorQuest acquired Ashland's refined wood rosin and natural wood terpenes unit and later merged it with LyondellBasell's Flavors & Fragrances business, now called Renessenz.

The Georgia-based company is a manufacturer of ingredients for the oral care, beverage, fragrance and food and beverage market.

Pinova has manufacturing operations in Brunswick, Colonel's Island, and, Florida and had revenues of around $290 million last year.

With this acquisition, Symrise is expanding its range of fragrance ingredients and will extend its forward integration in menthol to include specialty cooling substances, which are seeing increased use in combination with menthol-based products.

The Holzminden-based company has annual sales of more than € 2.1 billion and sells its products in more than 40 countries in Europe, Africa, the Middle East, Asia, the US and Latin America.

''With the acquisition of Pinova Holdings, which owns the operating companies Pinova and Renessenz, we are taking a big step in the growth of our aroma molecules business,'' said Heinz-Jurgen Bertram, CEO of Symrise. ''In view of the increasing importance of natural and renewable raw materials for the fragrance industry, the product range ideally complements our current portfolio.

''Pinova Holdings has recognized expertise and is very well positioned in that area. In addition, Pinova Holdings will broaden our portfolio of ingredients in oral care as well as some attractive new market segments. At the same time, the company will benefit from our global presence and sales structure as well as our R&D. expertise.''

Symrise is a global supplier of fragrances, flavourings, cosmetic active ingredients, raw materials and functional ingredients as well as sensorial and nutritional solutions and holds 12 per cent market share.

It has around 30,000 products primarily produced from natural raw materials such as vanilla, citrus, blossoms, plant or animal materials.