Symrise's Diana deal will close gap with rivals

[LONDON] Symrise AG's planned 1.3 billion euro (S$2.2 billion) purchase of French flavours and pet-food additive maker Diana Group helps the German company close the gap on larger rivals Givaudan SA and International Flavors & Fragrances Inc.

Symrise, a fragrance maker, has entered into exclusive talks with owner Paris-based buyout firm Ardian Sarl, formerly known as Axa Private Equity. A deal is expected to be completed in the third quarter, Holzminden, Germany-based Symrise said in a statement. It expects the acquisition to be earnings accretive from 2015.

Chief executive officer Heinz-Juergen Bertram is seizing the opportunity to acquire one of a limited number of larger targets in the flavours and fragrance industry to accelerate its growth and access natural raw materials. The purchase of Vannes, France-based Diana also adds a pet-food additives business whose earnings are more resilient to the ups and downs of consumer spending.