As part of its 2025 strategy to strengthen the capabilities of its Fragrances business, Givaudan announced that it has entered into an agreement to acquire Custom Essence, an American perfume design house.
Founded in 1981, Custom Essence is a family business based in New Jersey, USA. It specializes in the formulation of natural fragrances and creates fragrances in different categories, both for local and regional customers as well as for larger customers. The company employs 70 people worldwide.
Custom Essence's unique know-how in creating natural fragrances has greatly contributed to its success in the United States, particularly in the field of natural products for the hygiene products category. Guided by a culture of creativity, agility and quality, the company has earned the loyalty of a large customer base for whom it has created some of the favorite scented products of consumers in the United States.
Maurizio Volpi, President of Givaudan Parfums et Beauté, said: "We are delighted to announce the acquisition of Custom Essence, as it is fully in line with our 2025 strategy to strengthen our presence with local and regional customers and expand our capabilities in the field of natural fragrances. Custom Essence will bring true expertise in managing a fast-growing customer segment, as well as valuable know-how in the field of natural fragrance formulation. I look forward to warmly welcoming all Custom Essence employees to the Givaudan family. »
Prashun Patel, Director of Operations at Custom Essence, said: "We are very proud to join Givaudan and bring our knowledge of natural fragrance creation, as well as our local and regional customers. Givaudan's support in technology, regulation, supply chain and international manufacturing will allow us to rapidly increase our capabilities to create even more value for our customers. We look forward to creating together the beautiful fragrances that appeal to consumers. »
The terms of the transaction will not be disclosed, but it is estimated that Custom Essence's business would have accounted for approximately $40 million in additional revenue for Givaudan's 2020 results, on a pro forma basis. Givaudan will finance this operation, which it expects to complete in the fourth quarter of 2021, using existing resources.