Sweet deal for Symrise
15.04.2014 - German flavour and scent specialist Symrise has announced its plans to acquire French pet-food ingredients maker Diana Group for €1.3bn.
Symrise AG announced that the company has submitted a binding offer and entered into exclusive discussions with the owners of Diana Group, Paris-based private-equity firm Ardian Sàrl, with regards to the acquisition of the French company. With the takeover, Symrise aims to strengthen its activities in the flavour and nutrition markets. The deal is expected to be completed in the third quarter 2014. The German company thus closes the gap on larger rivals like Swiss Givaudan SA and US-American International Flavors & Fragrances Inc.
Diana Group, which is headquartered in Vannes, is a "highly profitable business" for Symrise: the company generated sales of around €425m in 2013, with an EBITDA margin of approximately 21%. Symrise CEO Heinz Jürgen Bertram expressed his satisfaction with the deal: "The proposed acquisition is fully in line with our strategic objective to further accelerate profitable growth. With Diana we will be able to significantly diversify our portfolio for natural ingredients, tap into new business segments, strengthen our raw material supply and meet the requests for traceability from our customers. The planned integration of Diana will create an unparalleled set-up which will offer us new opportunities for profitable growth beyond our current market and establish an excellent position to generate value in the future."
The investment amounts to €1.3bn, for which Symrise has already secured the required bridge financing. The final financing structure will comprise of debt and equity. The acquisition is expected to be fully EPS accretive from 2015 onwards. The proposed transaction is subject to consultation with the worker’s council and to antitrust clearance. Stamford Partners LLP acted as sole financial advisor to Symrise on the transaction.