Firmenich to acquire French ingredients supplier, DRT

RENEWABLE INGREDIENTS

Firmenich to acquire French ingredients supplier, DRT

Firmenich, the Swiss fragrance and flavour major, has agreed to acquire France-based ingredients supplier Les Dérivés Résiniques et Terpéniques (DRT) from private equity firm Ardian.

Firmenich announced that it has entered into an agreement with Ardian, Tikehau Capital and family shareholders to acquire DRT, which develops a range of plant-based and naturally-derived ingredients from terpenes and rosin derivatives – such as wood rosin resins – which can be used as texturisers in beverages, chewing gum and personal care products.

DRT’s ingredients are mainly sourced from pine trees, and Firmenich stated that the acquisition will significantly enhance its portfolio of ‘renewable’ ingredients. Financial terms of the deal were not disclosed. DRT operates nine production facilities worldwide – four in France, two in the US, two in India and one in China – and the company registered a turnover of Euro 550-mn in its most recent annual results.

Mr. Patrick Firmenich, Chairman of the board at Firmenich said, “I am thrilled to bring DRT’s unique capabilities for developing sustainable ingredients to Firmenich. This proposed combination builds on our business partnership of more than 30 years and our established track record of successful co-development in a long-standing joint venture.

Mr. Laurent Labatut, CEO of DRT, added, “We share a long-standing relationship with Firmenich as it is one of our main partners. Firmenich is renowned for its cutting-edge research that feeds into the broadest and finest ingredients palette. Our joint innovation capabilities would open up new opportunities to support our clients across our entire product portfolio. Together we look forward to opening a new chapter with a shared ambition to design best-inclass sustainable ingredients for our customers.”

“DRT would bring new capabilities in health & nutrition, cosmetics, as well as a number of new markets, including adhesives, coatings and agriculture. This acquisition reinforces our presence in France, which is our second largest market where we have been established for more than 120 years,” commented Mr. Gilbert Ghostine, CEO, Firmenich.

RESPONSIBLE CORPORATES

LVMH and Firmenich to use perfume and cosmetics factories to manufacture hand sanitiser

Swiss fragrance and flavour firm, Firmenich and French luxury goods giant, LVMH, have announced plans to use its perfume and cosmetics production sites to manufacture hand sanitiser amid the Covid-19 outbreak. LVMH factories, which produce products for brands like Christian Dior and Givenchy, will manufacture free disinfectant and deliver it to French authorities, as well as the Assistance Publique-Hôpitaux de Paris, which is Europe’s largest hospital system.

“Through this initiative, LVMH intends to help address the risk of a lack of product in France and enable

18 a greater number of people to continue to take the right action to protect themselves from the spread of the virus. LVMH will continue to honour this commitment for as long as necessary, in connection with the French health authorities,” the company said in a statement. Firmenich also announced that in response to the “exceptional measures announced by the Geneva authorities” to combat the Covid-19 virus, it is “adapting the production at the La Plaine (Switzerland) manufacturing site to donate 20 tons of disinfectant solution to the Geneva University Hospital (HUG), and medical & emergency services”.

“As a responsible Swiss company, we must take action and lead by example, to help our local community during these exceptionally challenging times,” commented Mr. Gilbert Ghostine, CEO, Firmenich.