Joint Establishment by Royal DSM and Firmenich
- Chaileedo Press
- May 30, 2022
- 2 min read
Global raw material giant DSM and Swiss fragrance and fragrance supplier Firmenich will jointly establish the DSM-Firmenich joint venture. The two parties will promote high growth and innovation in market segments through complementary capabilities in fragrances, food and nutrition.
On May 31, BST (all times in this article are Beijing time), Royal DSM Group of the Netherlands and Firmenich, a Swiss fragrance and fragrance supplier, announced the signing of a cooperation agreement, and the two parties will jointly establish a DSM-Firmenich joint venture. After the establishment of the company, DSM will own 65.5% of the shares of DSM-Firmenich, while Firmenich will own 34.5% of the shares of DSM-Firmenich, and will receive more than 3.754 billion US dollars in cash (the transaction amount may be adjusted).
Among them, the combined fragrance and beauty division has combined revenue of 3.540 billion US dollars. Firmenich's fragrances and ingredients business will further expand the two companies' presence in the beauty market by merging with DSM's personal care and fragrance business. According to the news, the combined fragrance and beauty department will take a leading position in the fragrance ingredients companies, and will have high-end renewable, natural, biodegradable and other technologies.
It is reported that the DSM-Firmenich board of directors is under the Swiss governance and will be composed of three nominees from Firmenich shareholders, seven independent directors from the DSM supervisory board, one independent director from the existing Firmenich board and one new independent member. The transaction will eventually come to an end in the first half of 2023, and at that time, DSM-Firmenich will be listed on Euronext N.V.
It is worth mentioning that on May 30, Firmenich announced the signing of a strategic cooperation agreement with Scentrealm, a pioneer in digital scent technology in China.
Firmenich is making the digital transformation by combining artificial intelligence technology with human intelligence, leading the industry to launch AI-enhanced laundry care fragrances and AI-based flavors. This partnership with Smell Kingdom will help Firmenich to bring a higher level of fragrance and fragrance experience to its clients and consumers, as they explore the digital future of fragrance.
Paul Andersson, President of Firmenich China, said the partnership will strengthen Firmenich's leadership in digital innovation in the aroma and flavor industries and develop engaging new experiences for consumers in China.
According to public information, Scentrealm mainly focuses on the technological development and application of digital graphics and digital olfactory products. By summarizing the underlying classification methods of odors, a huge odor database has been established, and the digital, networked transmission and terminal playback of odors have been realized. As China's first supplier of digital scent technology and digital scent solutions, as well as the official supplier of the 19th Asian Games Hangzhou 2022, Scentrealm opened its offline experience center "Scent Metaverse" in Hangzhou in April 2022.
In August 2021, Scentrealm announced the completion of a 50 million RMB (about $7.505 million) A+ round of financing, which was successively invested by Monarch Capital and Shansheng Equity Investment Fund.
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