As part of its 2025 strategy to strengthen the capabilities of its fragrance business, Givaudan has announced that it has entered into an agreement to acquire Custom Essence, a US fragrance house.
Founded in 1981, Custom Essence is a family owned and operated business in New Jersey, USA. It specializes in natural fragrance formulation and creates fragrances in a variety of categories for both local and regional customers and larger clients. The company employs 70 people worldwide.
Custom Essence's unique expertise in creating natural fragrances has been a major contributor to its success in the U.S., particularly in the area of natural products for the personal care category. Guided by a culture of creativity, agility and quality, the company has earned the loyalty of a broad customer base for which it has created some of America's favorite fragrance products.
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 aimed at strengthening our presence with local and regional customers and developing our capabilities in the natural fragrances sector. Custom Essence will bring real expertise in managing a high-growth customer segment, as well as valuable know-how in the formulation of natural fragrances. I look forward to warmly welcoming all Custom Essence employees to the Givaudan family."
Prashun Patel, director of operations at Custom Essence, meanwhile, said: "We are very proud to join Givaudan and bring our knowledge of natural fragrance creation, as well as our local and regional customer base. Givaudan's technology, regulatory, supply chain and international manufacturing support will enable us to rapidly increase our capabilities to create even more value for our customers. We look forward to working together to create the beautiful fragrances that consumers love."
Terms of the transaction will not be disclosed, but it is estimated that the Custom Essence business would have represented around 40 M$ of additional sales to Givaudan's results in 2020, on a pro forma basis. Givaudan will finance the transaction, which it expects to complete in the fourth quarter of 2021, from existing resources.
