According to the two companies, DSM-Firmenich is the result of a merger of equals. In addition, the shareholders of the former Firmenich will receive 34.5% of the company’s shares, plus an amount of 3.5 billion euros. DSM shareholders will own the remaining 65.5% of the merged company. DSM CEO Dimitri de Vreeze will lead. Geraldine Matchett, who was with him the supreme boss of the company, leaves to work elsewhere.
Grow
The two companies hope the merger will allow them to grow faster, earn higher profits and therefore be worth more to their shareholders. This is done with four main activities, namely the production of raw materials for perfumes and cosmetics, ingredients for food, care and health and feed products and medicines. The headquarters will have two locations, one in Maastricht and one in Kaiseraugust, Switzerland.
DSM, founded in Limburg in 1902 as De Nederlandse Staatsmijnen, increasingly concentrated on the production of chemicals in the second half of the last century. In the last ten years of the 20th century, DSM said goodbye to bulk chemicals and the now privatized company increasingly focused on specialty chemicals. It has developed specialty materials and ingredients for food and personal care products. Prior to the merger with Firmenich, DSM sold all of its parts for materials.
Raid
Firmenich was in the news earlier this year negatively. The Swiss competition authority has searched the company for an investigation into possible distortions of competition. This was part of an international investigation in which the European Commission investigated other fragrance and flavor companies.