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Focusing on Emerging Markets, Symrise Makes Strategic Acquisitions, Partnerships in U.S., Brazil and Europe
Posted: February 27, 2012
Symrise announced, in its ongoing effort to focus on emerging markets and rapidly growing market segments in the coming year, it has finalized two acquisitions and a strategic partnership. The company purchased the Brazilian activities of fragrance manufacturer Belmay and will transfer these activities to its own site. It is also strengthening its growing natural ingredients business with its acquisition of the US manufacturer Trilogy Fragrances, and the company agreed to a strategic partnership with the Swedish biotech firm Indevex regarding the similarly expanding segment of consumer health.
“We continue to follow our strategy of extending Symrise’s position in the rapidly expanding emerging markets and sharpening our unique profile with our expansion into innovative market segments. We are especially pleased that, at the start of the new fiscal year, we can announce three measures that put these goals into practice,” said Heinz-Jürgen Bertram, CEO of Symrise. “For consumers in developed nations, having a healthy lifestyle is playing an increasingly important role. Through our strategic partnership with Indevex Biotech, we are selectively expanding our expertise in functional foods and creating an optimal foundation for further product innovations. The purchase of Trilogy Fragrances expands our portfolio of natural perfume oils, particularly in North America.”
Bertram added, “In the dynamically growing countries of Latin and South America, the rising standard of living is driving demand for consumer goods. We allow for this situation with the purchase of Belmay’s perfume activities in Brazil.”
Expanding on its acquisition of Belmay’s Brazilian fragrance activities, Symrise noted that South America is one of the most important sales regions for the company because of its dynamic economic development. Moving ahead, Symrise plans to pool all developmental activities at a new center of expertise in Cotia, and production at the company’s Sorocaba site will also be expanded further. With the acquisition of Belmay’s Brazilian activities, Symrise is expanding its existing offer of products in the application areas fine fragrances, hair care and personal care. This transaction includes Belmay’s existing Brazilian customer portfolio and the company’s know-how, as well as the takeover of its supplier contracts. The companies have agreed to keep the purchase price confidential.
In its acquisition of Trilogy Fragrances, Symrise commented that, as natural products are increasingly in demand, particularly in developed nations, the company purchased Trilogy to expand its position in the natural fragrances segment. The product and customer portfolio from Trilogy is a complement to Symrise’s portfolio, rounding out its range of offers. The transaction also contributes to the expansion of the company’s presence in North America and includes a long-term supplier agreement between Symrise and Trilogy’s previous parent group, TPR Holdings. With this agreement, Symrise secures preferential supplier rights along TPR’s entire product portfolio including fine fragrances and personal and oral care, as well as functional ingredients. Achim Daub, the Symrise executive board member overseeing the scent and care division, said, “With the strategic measures announced today, we underscore our determination to selectively expand and invest in our most rapidly expanding activities and regions.”
And through its new exclusive strategic partnership with Swedish Indevex Biotech, Symrise aims to strengthening its consumer health division, which was founded in 2009. Indevex produces a patented nutrient complex and markets this primarily through a licensing model. Symrise and Indevex have also agreed to develop new product concepts through joint research and development. Furthermore, Symrise has secured access to a Scandinavian biotech network with existing product partnerships. Symrise is assuming a minority stake and will be represented on Indevex’s board by Bertram.