WWD.com/business-news/financial/eqt-set-to-buy-h-r-760429/

PARIS — After months of buzz, EQT Northern Europe Private Equity Funds has signed an agreement to buy Haarmann & Reimer, the wholly owned fragrance and flavors arm of Bayer AG, for $1.67 billion, the firms said Wednesday. Figures are converted at current exchange rates from the euro.

This story first appeared in the July 18, 2002 issue of WWD.  Subscribe Today.

EQT also said it will take a majority stake in Dragoco, another fragrance-and-flavors firm, with the intent of merging the two firms into a yet-to-be-named entity. Dragoco and H&R are based in Holzminden, Germany.

EQT will own 76 percent of the new firm, with Dragoco’s chief executive, Horst-Otto Gerberding, heading the new firm and holding 22 percent. German bank NordLB will own the other 2 percent. The deal should close in the fourth quarter after cartel authorities OK it.

The new company should ring up annual sales of $1.256 billion, putting it in the top four, according to Dragoco executives.