DSM has definitively merged with the Swiss producer of flavors and fragrances Firmenich. This brings an end to the independent existence of the company that originated from De Nederlandse Staatsmijnen and transformed itself from a mining company into a specialty chemicals company.
According to the two companies, DSM-Firmenich is the result of a merger of equals. In addition, shareholders of the former Firmenich will receive 34.5 percent of the company’s shares, plus an amount of 3.5 billion euros. DSM shareholders will own the remaining 65.5 percent of the merged company. DSM CEO Dimitri de Vreeze will be at the head. Geraldine Matchett, who was the top boss at the company with him, leaves to work elsewhere.
The two companies hope that the merger will allow them to grow faster, achieve higher profits and thus 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 foodstuffs, care and health products and for animal feed and medicines. The head office will have two locations, one in Maastricht and one in Kaiseraugust, Switzerland.
DSM, which was founded in Limburg in 1902 as De Nederlandse Staatsmijnen, focused increasingly on the production of chemicals in the second half of the last century. In the last ten years of the twentieth century, DSM said goodbye to bulk chemicals and the now privatized company increasingly focused on specialty chemicals. It developed specialist materials and ingredients for food and personal care products. Prior to the merger with Firmenich, DSM sold all its parts for materials.
Firmenich was in the news earlier this year negatively. The Swiss competition authority raided 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.