Givaudan, the global leader in flavors and fragrances, has recently announced that it is planning to acquire Drom to further extend its leadership in the global Fragrance market. Givaudan is headquartered in Switzerland with local presence in over 145 locations and has almost 13,600 employees worldwide including India.
Founded in 1911, Drom is a global perfume house creating fragrances for consumer products and fine fragrance customers across the world. Drom is headquartered near Munich in Germany and has manufacturing facilities in China, Germany, the USA and Brazil. The company employs 489 people globally.
While expressing the excitement over the acquisition of Drom Gilles Andrier, chief executive officer of Givaudan said, “The acquisition of Drom is very exciting for Givaudan as it further asserts our leadership position in the Fragrance market globally and is fully in line with our strategic ambitions. Like Givaudan, Drom has a long heritage in fragrance creation and their capabilities and strong culture will fit perfectly with ours. We look forward to welcoming Drom’s employees to Givaudan and are confident that our combined capabilities will deliver a compelling valuable proposition for our customers across segments and in key markets.”
Maurizio Volpi, president -Fragrance Division at Givaudan said, “Drom is a much-respected international fragrance house that has developed a strong customer base, in particular with local and regional customers, thanks to their creativity and excellent service levels. The complementary nature of both businesses will further enhance our capabilities in serving customers across all segments and geographies.”
Ferdinand and Andreas Storp, co-owners and presidents of Drom, said, “We are very excited to have Givaudan as the new home for Drom. We are convinced that the combination with Givaudan represents an outstanding strategic fit and will allow Drom to further expand its customer reach and geographical footprint going forward.”
According to Givaudan’s press statement, the terms of the deal have not been disclosed. Drom’s business would have represented approximately EUR 110 million (approximately Rs 8,700 crore) of incremental sales to Givaudan’s results in 2018 on a proforma basis. Givaudan plans to fund the transaction from existing resources. The planned acquisition remains subject to formal approvals from the relevant regulatory authorities and the transaction is expected to close in the third quarter of 2019.