Pinova is a supplier of natural and renewable ingredients to the cosmetic sector, specializing in perfumes, fragrances and oral care – areas that Symrise already has an established business in.
Symrise has confirmed that it paid $397m to acquire the business, and executives at the company say that the addition of the new portfolio is particularly fortuitous in view of its expansion into fragrance ingredients, ultimately boosting its competitiveness in fragrance compositions.
Likewise, the move also serves to expand the company’s footprint in the menthol area, specifically by including specialty cooling substances that area being increasingly used in combination with menthol-based products.
Growth in aroma molecules
"With the acquisition of Pinova Holdings, which owns the operating companies Pinova and Renessenz, we are taking a big step in the growth of our Aroma Molecules business,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise.
“In view of the increasing importance of natural and renewable raw materials for the fragrance industry, the product range ideally complements our current portfolio. Pinova Holdings has recognized expertise and is very well positioned in that area.“
The deal is also expected to bring significant synergies that should lead to cost savings once the company is integrated into Symrise’s global structure. In particular those synergies will be apparent in the integration of the sales and research and development teams.
In total those synergies achieved through the integration of the new business is expected to achieve annual savings of $25 million by 2020.
Pinova’s extensive product portfolio
The Pinova business includes three segments – Fragrance, sensory and performance specialty, each of which compliments the existing Symrise portfolio in specific ways.
The addition of the new fragrance business gives Symrise increased capabilities in natural and renewable raw materials, particularly in products derived from wood, while the menthol portfolio will mainly serve to grow its footing in oral care and the sensory portfolio will help grow its more technical applications.
Pinova has manufacturing operations in three locations – Brunswick and Colonel’s Island, in Georgia and Jacksonville, Florida – and recorded sales of $287 million with a workforce of around 400 in fiscal 2014.