DSM and Firmenich, One Step Closer to Finalize Merger
DSM and Firmenich jointly announce the launch of the exchange offer to DSM shareholders to create DSM-Firmenich. This brings the two companies one step closer to combining two culturally aligned, purpose-led businesses in a transformational merger.
The merger process started in May 2022, when DSM and Firmenich announceed that they had entered into a business combination agreement to establish the leading creation and innovation partner in nutrition, beauty and well-being (“DSM-Firmenich”). The combination will bring together Firmenich’s uPerfumery and Taste businesses, its science platforms and associated co-creation capabilities with DSM’s Health and Nutrition portfolio and scientific expertise. The new company will have four high-performing and complementary businesses, each with leading positions and underpinned by world-class science.
“The combination of DSM and Firmenich is transformational, and brings together two culturally aligned and iconic businesses, each with Page 3 of 13 over 125 years’ heritage of innovation,” said Patrick Firmenich, Chairman of Firmenich. “Our shared purpose and common values, combined with our highly complementary capabilities gives me confidence we can accelerate our growth further through innovation and new creations. I am confident that for all stakeholders of the future DSM-Firmenich business, the most exciting times are still to come.”
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, commented: “We are honored to propose the combination of DSM and Firmenich, and the opportunity to bring together 28,000 passionate people with a common commitment to enable our customers to realize their ambitions as we better the health and well-being of people and the planet. Together DSMFirmenich will enjoy complementary capabilities, including one of the largest creation communities in the industry, enabling us to unlock new opportunities for customers as well as position us to deliver enhanced long-term growth and shareholder value, sustainably. By coming together, we will establish a company where anyone, anywhere in the world, wishing to make a positive impact should aspire to work.”
The combination is expected to realize recurring run-rate pre-tax synergies of approximately €350m adjusted EBITDA per year by 2026, including an uplift of around €500m in annualized revenues as a result of accelerating innovation with customers. Substantial revenue synergy potential is expected from the integration of DSM’s Food & Beverage and Firmenich’s Taste & Beyond businesses. To realize the total synergies, DSM-Firmenich expects to incur one-time implementation costs of approximately €250m. Given the complementary nature of the merger, the integration execution risks are considered to be limited.