Symrise Sells Pinova to France’s DRT
German flavors and fragrances manufacturer Symrise has agreed to sell Pinova Inc. to French plant-based products company DRT for $150 million. Headquartered in Brunswick, Georgia, USA, Pinova is a leading manufacturer of specialty resins and chemical intermediates with a production site in Brunswick. The portfolio includes specialty rosin, polyterpene resins and sensory ingredients used in applications such as adhesives, construction, coatings, beverages and tires and rubber for the automotive industry. The company is expected to generate sales of around $111 million in fiscal 2016.
“With its compelling portfolio and impressive access to the US market, Pinova represents an ideal addition to our business. This acquisition complements our investment in our new production facility in Effingham County, Georgia, which will be fully operational in 2017,” said DRT’s CEO, Laurent Labatut.
As part of the deal, Symrise and DRT will continue to cooperate on individual product development projects, and Pinova will continue to supply specific strategic raw materials to Symrise.
Symrise CEO Heinz-Jürgen Bertram said the agreement with DRT brings strong benefits for all sides. He commented: “For Symrise, it unlocks resources, which allow us to advance expanding our fragrances activities while at the same time securing access to important raw materials. For Pinova Inc., the transaction opens additional prospects as the business will become a strong pillar of DRT, which will further drive its growth course and strengthen its footprint in the US market.”
The transaction is expected to close by the end of this year, subject to antitrust approval. Symrise acquired Pinova Inc. as part of Pinova Holdings in September 2015 for $397 million. The activities of the holding’s Renessenz subsidiary, which makes ingredients for fragrances, oral care products and food and beverages, has been fully integrated into the Aroma Molecules division of Symrise’s Scent & Care segment.