Givaudan continues M&A spate with purchase of “much-respected” Drom
Givaudan, the global scent and flavour giant behind many of our most familiar smells and tastes, has been on a mission to pursue growth through acquisition this year. Now, that mission is continuing with the purchase of a major Munich-based fragrance house, Drom. Drom will bring significant capabilities to Givaudan’s business, and help to extend its global footprint. The acquisition should be finalised in the third quarter of the year.
Givaudan’s share price has trended up over the year to date
Source: Yahoo Finance
In less than a year, Givaudan has now made five major acquisitions. It started last September, when the company took a minority stake (that soon turned into a full acquisition) in Naturex. In May this year, the company extended its lead in natural ingredients with the purchase of French fragrance specialist Albert Vieille and, in the same month, bought German company AMSilk (an industrial supplier of vegan silk biopolymers). It’s also purchased Expressions Parfumees. The company says “targeted acquisitions” will continue to fuel its growth strategy into 2020.
Speaking about the Drom purchase, Givaudan CEO Gilles Andrier said: “The acquisition of Drom is very exciting for Givaudan as it further asserts our leadership position in the fragrance market globally. Drom has a long heritage in fragrance creating and their capabilities and strong culture will fit perfectly with ours.”
Adding to that, Givaudan’s fragrance division president, Maurizio Volpi, 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 complimentary nature of both businesses will further enhance our capabilities in serving customers across all segments and geographies.”
Dominion holds Givaudan in its Global Trends Managed Fund.
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