DSM and Firmenich Updates New Merger Process
- Chaileedo Press
- Nov 24, 2022
- 2 min read
Firmenich and DSM have released the latest exchange offer as part of their merger process, which was first announced in May.
On November 22, Royal DSM, the international nutraceuticals, chemicals and pharmaceuticals group, and Swiss perfume and fragrance giant Firmenich announced new developments in their merger, with the Dutch Authority for the Financial Markets (AFM) having approved an offering notice in connection with the transaction, officials said.
On May 31 2022, DSM and Firmenich announced a merger and will jointly form a new company, DSM-Firmenich. After the merger, will the company will become one of the largest perfume, beauty, health and nutrition suppliers on time, with revenues of more than $11.5 billion and total revenues of $3.3 million in the perfume and beauty division.
The announcement said the acceptance period for the transaction began at 9 a.m. on Nov. 23 and ended at 5:40 p.m. on Jan. 31. After the successful merger, DSM shareholders will own 65.5 percent of the shares and Firmenich shareholders will own 34.5 percent and receive about $3.6 billion in cash.
This follows DSM and Firmenich's announcement that they will accelerate strategic delivery by further driving innovation in high-growth and resilient market segments, with the merger expected to be completed in the first half of 2023 and listed on Euronext Amsterdam upon completion. Firmenich's fragrances and ingredients business will further expand the share of the beauty market for both businesses through a merger with DSM's personal care and fragrances business. The combined fragrance and beauty division will be a leader among fragrance ingredients companies and will also have high-end renewable, natural and biodegradable technologies, the sources said.
Geraldine Matchett and Dimitri de Vreeze, co-CEOs of DSM, said: "We are entering the exciting next phase as we look to bring together DSM and Firmenich's complementary capabilities, likeminded and passionate people, and unite the heritages of two great and historic companies".
In addition, on the 22nd, the two companies announced their corporate results.
In 2021, DSM's total revenue was about $7.6 billion and Firmenich's total revenue was about $4.4 billion, with a combined revenue of about $11.9 billion. In the first half of this year, DSM's total revenue was about $4.3 billion and Firmenich's total revenue was about $2.5 billion, with a combined revenue of about $6.8 billion.
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