Firmenich will be acquired by Royal DSM

Royal DSM and Firmenich, based in Geneva, Switzerland, have agreed to merge. Following the merger, Royal DSM shareholders would own 65.5 percent of the company, while Firmenich stockholders will own 34.5 percent of the company and get €3.5 billion ($3.7 billion) in cash.

With combined sales of around €11.5 billion ($12.3 billion), DSM-Firmenich will have four business units: fragrance and cosmetics, food and beverage, health and nutrition, and animal nutrition.

The combined companies will have a workforce of 28,000 people and will be based in Switzerland.

Perfumery and beauty, health and nutrition, and animal nutrition will be based in Switzerland, while food and beverage will be based in the Netherlands.

According to the corporations, the company’s biotechnology research arm will also be situated in the Netherlands.

“DSM-Firmenich will bring together cutting-edge research and innovation with leading creativity,” stated Thomas Leysen, chairman of DSM.

“By working together, we will be able to better service our clients’ needs while also delivering compelling growth and returns.”

Successful mergers, on the other hand, necessitate more than complimentary capabilities or attractive financials; they necessitate not only balanced governance and respect for all stakeholders’ interests but also necessitate common values.

My colleagues and I are certain that we have all of those criteria, and the DSM supervisory board has agreed that this is truly a merger in the best interests of all stakeholders.”

DSM-Firmenich will be led by Geraldine Matchett and Dimitri de Vreeze, who are currently co-chief executive officers of DSM.

“By combining our complementary skills, including one of the industry’s largest creation communities, we will be able to unlock new opportunities for clients while also positioning ourselves to achieve greater long-term growth and shareholder value,” they stated.

“By banding together, we will create a corporation where anyone from anywhere in the world who wants to make a positive difference can work.”

During the first half of 2023, the transaction is expected to be finalized.