France: Diana Group to be acquired by Symrise

According to reports, Diana Group of France is to be acquired for €1.3 billion (US$1.8 billion) by the German scents and flavours group Symrise.

Diana is active in the food, pet food, nutraceuticals, aquaculture and cosmetics space and has become one of the leading suppliers of organoleptic solutions based on natural ingredients, Symrise said in a statement.  The French company was further described as “a world leader in natural and functional food solutions and palatability enhancers for pet food”.

The transaction is designed to help Symrise narrow the gap on top rival Givaudan and expand in the natural ingredients and petfood sectors, according to the company. It will make Symrise the world’s third-biggest scents and flavours company (moving up from 4th place), with a goal of boosting annual sales by around € 1 billion ($1.4 billion) by 2020.

The firm would likely finance the deal via a 10% capital increase, as well as a mix of debt and equity, Symrise Chief Executive Heinz-Juergen Bertram said, and the acquisition should start adding to earnings per share from 2015 onward.

Mr Betram commented: “The proposed acquisition represents a major milestone for Symrise right after our 10^th 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 & 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.”

Source: Symrise / Reuters