Symrise Seeking to Acquire Diana Group

Symrise AG has submitted a binding offer and has entered into exclusive discussions with the owners of Diana Group with regards to the acquisition of Diana Group. With the planned transaction, Symrise will significantly expand its position in the flavor and nutrition market, as well as strengthen its backward integration and expand its activities into the highly attractive pet food market. The investment amounts to €1.3 billion, for which Symrise has already secured the required bridge financing.

As the partner of choice for its clients in the food, pet food, nutraceuticals, aquaculture and cosmetics industries, Diana has become a leading supplier of organoleptic solutions based on natural ingredients. The company is headquartered in Vannes, France, and operates its own production facilities and sales offices in 23 countries in Europe, North and Latin America, as well as Asia. It also hs more than 2,000 employees.

Heinz Jürgen Bertram, CEO of Symrise AG, commented, “The proposed acquisition represents a major milestone for Symrise right after our 10th anniversary, and is fully in line with our strategic objective to further accelerate profitable growth. Diana Group is an impressive and highly profitable business with a strong complementary fit to our activities in the flavor and nutrition market. 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 that will offer us new opportunities for profitable growth beyond our current market and establish an excellent position to generate value in the future. We believe that a multiple of around 14 x EBITDA (2013) represents an attractive valuation given the quality of Diana’s product and customer base, its high margin characteristics, and the future growth prospects of the business.”

The acquisition will create a unique and highly competitive platform which will allow Symrise to capitalize on market opportunities at an accelerated pace, intensify business with global key accounts and consumer goods companies and gain additional market share. With its global network and the particularly strong footprint in emerging markets, Symrise will enhance Diana’s regional presence in key growth regions. In addition, Diana will benefit from Symrise’s strong R&D capabilities in flavors, consumer health and life essentials, which will advance innovations in these key business segments.

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