Firmenich announced that it has entered into exclusive negotiations with Ardian, Tikehau Capital and the family shareholders, with a view to acquiring Les Dérivé Résiniques et Terpéniques (DRT).
DRT is one of the world leaders in the production of renewable ingredients with high added value derived from plant chemistry, mainly from pine derivatives.
“I am delighted at the prospect of seeing DRT bring to Firmenich its skills in the development of sustainable ingredients. This planned merger is the culmination of a business partnership and many joint developments over the past 30 years, says Patrick Firmenich, Chairman of the Board of Firmenich. We would like to thank Ardian and Tikehau Capital for their support and we are delighted to welcome DRT employees within Firmenich. We share the same passion for our customers and for sustainable development, as well as strong family values. "
“Firmenich would be the ideal home for DRT,” says Thibault Basquin, Managing Director at Ardian Buyout. I warmly thank Laurent Labatut and his team for our partnership over the past few years. Ardian is proud to have enabled DRT to accelerate its growth and invest in new projects, as well as to strengthen its strategy around sustainable development. A strategic partner of DRT for many years, Firmenich would be in a perfect position to enable the company to take a step forward in the development of its products. As a family business committed to innovation, Firmenich would also offer a privileged environment for DRT employees. "
Emmanuel Laillier, Director of Private Equity at Tikehau Capital added: “Tikehau Capital has supported DRT's growth strategy and global development for six years. Today, we are very happy to support the merger of DRT and Firmenich, constituting a key step in the pursuit of its development. "
"DRT's know-how strengthens our position as a major player in our perfumery and ingredients businesses, thus offering our customers the most complete range of sustainable and renewable ingredients," declares Gilbert Ghostine, CEO of Firmenich. DRT will also bring us new skills in health and nutrition, cosmetics, as well as an opening to new markets, including adhesives, coatings and agriculture. This acquisition strengthens our presence in France which is our second largest market where we have been established for more than 120 years. I am delighted with this association with DRT which will allow us to support all our customers in their transformation towards a sustainable future. "
“We have a long-standing relationship with Firmenich since it is one of our main partners,” explains Laurent Labatut, CEO of DRT. Firmenich is known for its cutting edge research, which has resulted in a very wide range of ingredients of the highest quality. By combining our innovation skills, we would open up new opportunities to support our customers across their entire product portfolio. Together, we would be delighted to open this new chapter with the common ambition to create the best renewable ingredients for our customers. "
Recognized for its expertise in the development of sustainable, renewable ingredients and natural products derived from terpenes and rosin derivatives, DRT offers green alternatives to many applications in different markets. Founded in 1932 and based in Dax, the company has developed an upstream integrated business model, including access to renewable raw materials, extraction and distillation skills, as well as advanced innovation processes. A family business for most of its history, its growth is, according to its management, the fruit of its long-term commitment to its suppliers and customers.
DRT generates sales of over 550 million euros, employs over 1,500 people worldwide and operates from four production sites in France, two in the United States, two in India and one in China .
Financial terms of the deal were not made public. The proposed transaction remains subject to several conditions, including consultation of the competent personnel representative bodies, the signing of a final agreement and the validation of the competition authorities. Firmenich has been advised by Goldman Sachs International, Raphaël Financial Advisory and Bredin Prat. Ardian has been advised by Citigroup, Rothschild & Co, Latham Watkins and White & Case.