France-based Orgasynth says it is pursuing its strategy of refocusing its activities on the high-growth markets of finechemistry, flavours and fragrances.
The company first moved into the flavours and fragrance are in 2001 and began expanding the division following the acquisition, last December, of the FDA audited finechemistry production site, Orgapharm in Germany, which helped to firm up the renewed focused for the business.
Building on the earlier acquisition, Orgasynth signed a deal last week to take over Floressence, based in the southeast of France. The company specialises in the creation and manufacture of perfumecompositions largely for beauty care, fine perfume and industrial perfume companies.
Currently its clientsinclude leading international groups such as Yves Saint Laurent, L'Oréal and Biotherm.
Floressence also enjoys a strong international presence through its four subsidiaries and itsdistribution network, accounting for 60 per cent of its sales. This global reach gives it an international overview of marketsand consumer tastes, claims Orgasynth.
The takeover of Floressence is part of Orgasynth's vertical integration strategy in the perfume andcosmetic market and will help the group to draw on its capabilities in terms of production and thecollection of aromatic raw materials for the flavour and fragrance markets.
The company said that it expects the deal will generate additional annual sales of around €15 million in 2005, and will be accretive from thefirst year. In 2003 it recorded sales of €101 million and employed 480 people.
Orgasynth's decision to sell off its colourants division involves the company Steiner, which it acquired in 1998, and the colourants range for Gas Oil Markers,bought in 2001 from Rohm & Haas. A number of potential purchasers are said to have shown interest in bidding for the business.