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Givaudan to buy German fragrance producer Drom

By
AFP
Translated by
Nicola Mira
Published
today Jul 24, 2019
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Zurich, July 24 2019 (AFP) - Swiss group Givaudan, the world's number one fragrance and aroma manufacturer, announced on Wednesday that it is about to buy German fragrance producer Drom, without disclosing the value of the transaction.


The Givaudan group is based in Switzerland, and employs nearly 13,600 people worldwide - AFP


Givaudan indicated in a press release that the acquisition will need to be approved by the relevant competition watchdog, and hopes to finalise the operation in the third quarter 2019.

The acquisition will enable Givaudan to further boost its fragrance business, both in fine perfumery and in so-called functional perfumery, which includes scents used for shampoos, personal care products and detergents.

“Just like Givaudan, Drom, with its long-established tradition in fragrance creation, has a solid expertise and a corporate culture which match perfectly our own,” said Gilles Andrier, the boss of Givaudan, cited in the press release.

Drom was founded in 1911 and is specialised in the creation of fragrances for both fine and functional perfumery. Based near Munich, Drom has a staff of 489 people worldwide across its production sites in Germany, China, the USA and Brazil.

Though the terms of the operation have not been disclosed, Drom’s business should generate an extra €110 million in revenue for the Swiss group, based on Givaudan’s pro forma results for 2018.

Last year, Givaudan’s sales were worth CHF5.5 billion (€5 billion at current exchange rates), up 9.4% notably thanks to the group's acquisition activity, including the purchase of French company Naturex. The group’s perfume division generated a revenue of CHF2.5 billion.

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