Germany’s Symrise buys Pinova Holdings in a $397m deal

Germany’s Symrise is acquiring Pinova Holdings, a US manufacturer of perfume ingredients derived from natural sources, for $397m from Canada-based buyout company TorQuest.

Symrise focuses on plant-based substances rather than petrochemical-based ingredients. The company has been bolstering its ingredients businesses in order to gain better control over manufacturing standards.

According to Symrise Chief Executive Heinz-Juergen Bertram, the transaction reflects "the increasing importance of natural and renewable raw materials for the fragrance industry."

Founded in 2010, Pinova bought Ashland’s refined wood rosin and natural wood terpenes business and later combined it with LyondellBasell’s Flavors & Fragrances business, which is now known as Renessenz.

Following approvals, the transaction is expected to be completed within 12 months.

TorQuest will gain a $20m premium for a complete price of up to $417m.

Symrise hopes yearly synergy impacts worth $22.6m from the transaction by 2020.

Bertram said: "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.

"In view of the increasing importance of natural and renewable raw materials for the fragrance industry, the product range ideally complements our current portfolio."

Pinovo has manufacturing operations at Brunswick and Colonel’s Island, Georgia, and in Jacksonville, Florida, the US.