Givaudan has reached an agreement to acquire Custom Essence, a US-based fragrance creation house.
WHO: Founded in 1981, Custom Essence is a family-owned business based in New Jersey that specializes in the formulation of natural fragrances and creates perfumes across categories. The company employs 70 people globally.
Givaudan has a heritage stretching back over 250 years of innovating scents and tastes. In the fiscal year 2020, the company employed almost 16,000 people worldwide and achieved sales of CHF6.3 billion and a free cash flow of 12.8% of sales.
WHY: In line with its 2025 strategy to expand the capabilities of its fragrance business, the deal strengthens Givaudan's access to local and regional customers and expanding capabilities in natural perfumery in North America.
IN THEIR OWN WORDS: Maurizio Volpi, President of Givaudan Fragrance & Beauty, said: "We are excited to announce the acquisition of Custom Essence as it fits perfectly with our 2025 strategy to expand our presence with local and regional customers and grow our capabilities in natural perfumes. Custom Essence will bring true expertise in managing a fast growing customer segment, as well as valuable know-how in formulating natural fragrances. I look forward to warmly welcoming all the employees of Custom Essence into the Givaudan family."
Prashun Patel, Chief Operating Officer at Custom Essence, said: "We are proud to join Givaudan and to bring in our knowledge in natural fragrance creation, as well as our reach to local and regional customers. Givaudan's technology, regulatory, supply chain, and international manufacturing support will enable us to scale quickly to provide even better value to our customers. We are looking forward to creating together the beautiful fragrances that consumers love."
- Givaudan to acquire Custom Essence.
- The terms of the deal will not be disclosed. Custom Essence's business would have represented approximately USD$40 million of incremental sales to Givaudan's results in 2020 on a pro forma basis.
- Givaudan expects the transaction to close in Q4 2021 and will fund the transaction from existing resources.
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