Symrise Readies Initial Public Offer

Hot on the heels of ICI's sale of its Quest flavors and fragrances arm to Givaudan, privately held flavors and fragrances maker Symrise is being launched on the German stock market in an initial public offering. Symrise was formed in 2002 when private equity firm EQT acquired two German companies, family-owned Dragoco and Bayer's Haarmann & Reimer subsidiary, and merged them.

Symrise executives have embarked on a road show to introduce themselves to the financial community as a prelude to this week's IPO, expected to raise roughly $1.7 billion. That would top the $1.6 billion IPO of Wacker Chemie in April as the largest such launch on the German stock exchange this year.

In 2005, Symrise rang up sales of just under $1.5 billion; on the basis of results through the third quarter of this year, the company's 2006 sales should top $1.6 billion. Some 53% of its sales are in fragrances, and 47% in flavors and nutrition.

With its acquisition of third-largest producer Quest, Givaudan leapfrogged its archrival International Flavors & Fragrances into the top spot in flavors and fragrances; Symrise has been the fourth-largest, and now is the third-largest, supplier worldwide.