German flavors and fragrances producer Symrise is in talks to acquire French ingredients maker Diana for around €1.3bn.
The proposed deal will strengthen Symrise's presence in the flavor and nutrition market, and allow it to capitalize on market opportunities at an accelerated pace.
Headquartered in Vannes, France, Diana provides natural and functional food solutions to food, pet food, nutraceuticals, aquaculture and cosmetics sectors. It offers functional solutions based on vegetable and animal natural ingredients.
In 2013, the company had generated sales of about €425m and an EBITDA margin of around 21 %.
For the transaction, Symrise has secured the required bridge financing; the final financing will comprise of debt and equity.
Symrise CEO Heinz Jürgen Bertram said that the proposed acquisition represents a major milestone for Symrise right after its 10th anniversary, and is fully in line with the company's strategic objective to further accelerate profitable growth.
Bertram added, "With Diana we will be able to significantly diversify our portfolio for natural ingredients, tap into new business segments, strengthen our raw material supply and meet the requests for traceability from our customers.
"The planned integration of Diana will create an unparalleled set-up which will offer us new opportunities for profitable growth beyond our current market and establish an excellent position to generate value in the future."
Diana will benefit from Symrise's footprint in emerging markets and R&D capabilities in flavors, consumer health and life essentials.
Ardian senior managing director and mid markets enterprise capital head Philippe Poletti said, "As a globally leading F&F company, Symrise is an ideal owner for Diana to continue developing and growing its business."
