Danish ingredients giant Danisco has acquired Belgium-based flavour house, Perlarom SA, which is headquartered in Louvain-La-Neuve.
Perlarom employs 260 people in its four production sites and 10 subsidiaries around the world, but generates the major part of its €47m annual net sales in Europe.
Danisco reported that the acquisition “strengthens our position as a leading global ingredients supplier”, and added that the synergies of €6-7m will “create economic value added in the third full financial year after the acquisition”.
CEO Alf Duch-Pedersen said: “We´re now the number three player in flavours for beverages in Europe. This is the segment where we see the highest growth on the world market today – exceeding the average growth in the industry of about 4%.
“We therefore expect the Perlarom business to bring us further growth in this segment in the coming years. And we will use Danisco´s extensive worldwide sales network to promote and sell this new and wide variety of products that we now have access to.”
Subject to required regulatory approvals, the acquisition will have a positive effect on earnings per share from the next financial year (2003/04). In the financial year 2002/03 there will be a one-off cost of about €5m relating to integration.
The price on a debt-free basis corresponds to about 13 times EBITDA (€6m in 2001) and 20 times EBITA (€4m in 2001) based on the calendar year 2001. Around 75% of the purchase price is goodwill.
The world market for flavours is estimated at about €5.5bn, of which Europe is just over one third. Danisco´s flavour sales worldwide will amount to about €240m after the acquisition.