Swiss company Firmenich from Geneva assented merger with Royal DSM, which leads Royal DSM to obtain a share of 65.5% while Firmenich shareholders keep 34.5% plus receiving €3.5 billion ($3.7 billion) in cash.
Firmenich was founded in 1895 and is focussing on frangrance and flavours. After the merger, DSM-Firmenich intends to serve four different business branches: perfumery and beauty, food and beverage, health and nutrition, and animal nutrition. Keeping 28,000 people occupied, the combined enterprise with its headquarter in Switzerland will reach sales of approximately €11.5 billion ($12.3 billion).
According to the companies, the food and beverage business units as well as the biotechnology research branch will be located in the Netherlands.
“DSM-Firmenich will bring together leading creativity and cutting-edge science and innovation,” said Thomas Leysen, chairman of DSM. “Together we will be able to better serve the needs of customers and deliver compelling growth and returns. However, successful mergers require more than complementary capabilities or compelling financials; they not only require balanced governance and a respect of the interests of all stakeholders, but they crucially require shared values. My colleagues and I are convinced we have all of those elements, and it is for this reason that the supervisory board of DSM concluded that this is truly a merger which is in the interest of all stakeholders.”
The current co-chief executive officers of DSM, Geraldine Matchett and Dimitri de Vreeze, will work as co-CEOs in the combined company.
“Together, DSM-Firmenich 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,” they said. “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 merger shall be completed in the first 6 months of 2023.