While terms of the deal have not been disclosed, Induchem's business would have represented approximately CHF 25 million (€23m) of incremental sales to Givaudan's results in 2014 on a proforma basis, and plans to fund the transaction come from existing resources.
The deal to acquire 100% of the shares continues the cosmetics actives strategy in place at Givaudan, following the acquisition of Soliance which was completed last summer.
"Induchem is a second key step, after the acquisition of Soliance, towards our ambition to make Givaudan a significant player in the Active Cosmetic Business,” says Gilles Andrier, CEO of Givaudan.
“Induchem brings strong complementary capabilities to Givaudan and will greatly contribute in achieving our 2020 ambition to become a key player in this fast growing business. We are delighted to welcome Induchem's employees to Givaudan; our high cultural fit will contribute greatly to a successful integration."
Expanding portfolio
For Givaudan the new purchase brings a host of functional active cosmetics ingredients with proven efficacy results, as well as research expertise in fields such as biocatalysis, metagenomics, and biochemical synthesis.
With Induchem primarily operating in Switzerland, , France and the US, employing 65 people, the company will also look to enhance operations and expand.
"We expect Induchem to become an integral part of the Active Cosmetic Ingredients (ACI) business within the Fragrance Division,” adds Maurizio Volpi, President of Givaudan's Fragrance Division.
It is expected that Givaudan ACI and Induchem will be integrated, according to Volpi, who believes it will not only expand the portfolio of products, but also create a strong R&D and marketing platform to drive future growth in this space.
“Induchem has a strong track record in innovation which can bring value to our customers and to their consumers,” he says.
“Induchem has developed a very strong brand, an innovative portfolio of products, and very strong talent that we will continue to develop with the Induchem team for a successful future together.”