Major merger in Switzerland: Geneva-based flavor and fragrance manufacturer Firmenich merges with Dutch chemicals group DSM
The merged group plans a double headquarters in Kaiseraugst in the canton of Aargau and in the Netherlands.
The planned merger of Firmenich and DSM is to become a broad-based group with 38,000 employees and a combined turnover of 11.4 billion euros. The shareholders of the Geneva family business Firmenich will receive 34.5% of the shares of the new joint venture. The merged group plans a double headquarters in Kaiseraugst in the canton of Aargau and in the Netherlands.
The companies are expecting synergy gains of 350 million euros per year from the merger. Initial media reports did not mention the job cuts and restructurings. Firmenich operates a major flavor and fragrance production site in Geneva. The headquarters of DSM’s most important business area, feed additives and animal nutrition, is located in Kaiseraugst.
Firmenich is a direct competitor to the world’s leading manufacturer of flavors and ingredients Givaudan, based in Geneva. A few years ago, the direct successor of Givaudan, the American International Flavor and Fragrances (IFF), took over the food additives business of the chemical group Du Pont, creating a new starting position in the industry.