Givaudan to buy Quest's fragrance business

15 Dec '06

3 min read

Givaudan has signed an agreement with UK-based Imperial Chemical Industries PLC, to acquire its fragrance and flavour business, Quest International for £ 1,200 million or around CHF 2.8 billion. Quest will extend Givaudan's leadership position in all strategic segments of the fragrance and flavour industry.

Integrating Quest's unique set of talent, creativity, products and technology will result in a unique platform to serve customers and create a potential for accelerated growth. Givaudan expects to achieve annual synergies of CHF 150 million with full benefits to be realized after year three. The acquisition will be financed by debt and the issuance of up to CHF 1 billion in equity.

The history of Quest dates back to 1905. It became part of ICI in 1997 through an acquisition from Unilever. The company is headquartered in Naarden, the Netherlands and is a fully owned subsidiary of the ICI Group. Quest is one of the leading players in the global flavour and fragrance market with a turnover of £ 560 million (approximately
CHF 1,316 million) in 2005. Quest currently employs around 3,400 people.

This acquisition is fully in line with Givaudan's strategy to focus on developing markets and to capture opportunities in key segments and at key clients. It will strengthen Givaudan's current leadership and accelerate future growth, especially in important markets of Asia Pacific, Latin America, Eastern Europe and Africa and
the Middle East.

The transaction is subject to regulatory approval. It is hoped that completion will take place during the 1st Quarter 2007.

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