Intercontinental Fragrances specializes in developing and marketing fragrances

Tag : Flavour & Fragrance
Fragrance and flavoring manufacturer Symrise is expanding itsexpertise on the air care market by means of two significantacquisitions in the US. On September 25, 2008, the corporationsigned an agreement to take over Manheimer Fragrances. Three weeksprior to that, Symrise acquired Intercontinental Fragrances. Thesetwo moves make Symrise one of the leading fragrance suppliers forair fresheners in North America. In 2009, Symrise plans to create aglobal air care center in the US.

The North American market for air care products - which include airfresheners and scented candles - amounts to over $300 million andcomprises 10% of the entire fragrance market in the US. AcquiringIntercontinental Fragrances and Manheimer Fragrances significantlyincreases Symrise's overall share on the US fragrance market andstrengthens the company's position in the air care sector and onthe scented candles market in particular.

Intercontinental Fragrances specializes in developing and marketing fragrances for use in candles. The family-run company has itsheadquarters in Houston, Texas and was founded by James Readhimerin 1975. It is predominantly active on the US market and hassmaller subsidiaries and locations in Asia, Latin America andEurope. In 2007, Intercontinental Fragrances generated sales of $16million.

Manheimer Fragrances was established in 1984 and acquired by KerryIngredients & Flavours in 2004. The Teterboro, New Jersey-basedcompany does most of its business domestically. Its core competencyis developing scents for candles and air fresheners. ManheimerFragrances is also very successful in the field of certifiednatural organic and fair-trade certified fragrances. The companywas the first fragrance supplier worldwide to receive organic andfair-trade certification. In 2007 Manheimer Fragrances had sales of$40 million. The Natural Products business of Kerry Ingredients andFlavours is not part of this transaction and will continue asnormal under Kerry ownership.

Both companies have enjoyed significant growth rates in recentyears and are core-listed at key consumer goods companies in theUS.

With these acquisitions, Symrise is also laying the cornerstone fora global air care center in the US which will include and globallyleverage its activities in research, development, production andglobal marketing of fragrance compositions for candles and airfresheners.

"In addition to Asia, the US is the most important growth regionfor our Scent & Care division", states Dr. Klaus Stanzl, PresidentScent & Care, North America. "Winning new industrial and retailpartners will strengthen our market position in North America andaccelerate our growth. The synergies of these two companies willmake Symrise one of the leading North American suppliers of aircare fragrances. Furthermore, having a larger portfolio ofcertified organic and fair-trade ingredients will help us meet ourcustomers' growing demand worldwide for sustainable products."

"One of our declared goals is to further expand our market positionin the US - through both, organic growth and strategicacquisitions", adds Achim Daub, Global President, Scent & Care."The two recent acquisitions will significantly strengthen ourposition on the increasingly important US air care market. Thismarket segment will also have a high priority for us on a globallevel. Starting in 2009, we will focus all of our air careactivities in the US and make this expertise available to theinternational Symrise group."

The Manheimer transaction is subject to the approval of theanti-trust authorities.

The anticipated combined consideration for the transactions, whichis partially contingent on the attainment of certain milestones,will be c $100 million. In 2008, the acquisitions will add c $12million dollars to Group sales, assuming closure of the Manheimertransaction towards the end of October. After integration costs aretaken into account, the Group EBITDA will not be materiallyimpacted this year, but Group earnings will be enhanced in 2009.Integration will be completed in the first half of 2009.

About Symrise

Symrise is a global supplier of fragrances, flavorings and rawmaterials and active ingredients for the perfume, cosmetics andfood industry.

Its sales of