PARIS — Givaudan said it is in exclusive negotiations with Agro Industrie Recherches & Développements (ARD) to acquire Soliance, a cosmetics ingredients supplier.
According to the Swiss flavors and fragrance supplier, the deal would strengthen its process development and research capabilities.
Terms were not disclosed, but Givaudan said it plans to fund the transaction with existing resources.
Soliance’s operations last year would have incrementally added to Givaudan’s sales about 25 million Swiss francs, or $27.7 million at average exchange for the 12-month period. As reported, the company’s 2013 sales were 4.37 billion Swiss francs, or $4.72 billion.
Soliance “develops high added-value active ingredients, derived from vegetable sources, microorganisms and microalgae,” according to Givaudan.
The company’s two sites are in France, in Pomacle and Ile Grande, and has 77 employees.
“Soliance represents Givaudan’s first acquisition since that of Quest,” said Gilles Andrier, chief executive officer of Givaudan, referring to the purchase of the flavors and fragrance supplier in late 2006.
“We expect Soliance to become an integral part of the Fragrance Division and bring significant contributions over the next few years, particularly in research and development,” continued Michael Carlos, president of Givaudan’s Fragrance Division. “Soliance has a strong track record of identifying natural molecules which can bring value to our customers and to their consumers.”
The transaction is expected to close in the second quarter of this year, subject to closing approvals and conditions.