Givaudan has entered exclusive negotiations to acquire France-based company Albert Vieille.
Albert Vieille is primarily involved in the development of natural ingredients that are used to create perfumes and aromatherapy products. The company specialises in aromatic plants and pure essential oils, as well as procures raw materials worldwide.
Established in 1920, Albert Vieille employs 50 people and has a manufacturing facility in Spain.
Givaudan CEO Gilles Andrier said: “Acquiring Albert Vieille will fit nicely with our 2020 strategy to enrich Givaudan’s palette with novel in-house natural ingredients that our perfumers will use to offer high-quality and creative solutions to our customers.
“This acquisition will also allow us to enter the market of essential oils for aromatherapy, which will contribute to our 2020 strategy for health and well-being.
“It is another step in reinforcing our presence in Grasse, where the perfumery know-how has recently been awarded World Heritage Status by UNESCO.”
Givaudan expects to use existing resources to fund the planned deal. Albert Vieille’s business would represent around €30m of additional sales to Givaudan’s last year’s results on a proforma basis.
The deal is scheduled to be completed by Q1 2019.
Givaudan’s fragrance division president Maurizio Volpi said: “Albert Vieille will bring to Givaudan the expertise to further develop and vertically integrate our natural capabilities.
“We will combine our existing know-how with those of Albert Vieille to meet the needs of our customers who are facing an increasing demand from consumers for more natural and sustainable fragranced products.”
Givaudan is mainly involved in fine fragrances, consumer products, and fragrance and cosmetics ingredients.
