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Dow Jones Newswires: Royal DSM to merge with Firmenich

Royal DSM NV said Tuesday that it plans to merge with fragrance and flavor company Firmenich SA to create DSM-Firmenich, with completion and listing on Euronext Amsterdam expected in the first half of 2023.

The Dutch nutrition, health and bioscience company said following the merger its shareholders will own in aggregate 65.5% of the enlarged company, while Firmenich shareholders will hold the outstanding stake. The deal implies an enlarged market capitalization of 25.3 billion euros ($27.27 billion).

DSM Chairman Thomas Leysen will become chairman of DSM-Firmenich, with Firmenich Chairman Patrick Firmenich to become vice-chairman. DSM co-chief executives Geraldine Matchett and Dimitri de Vreeze will be named co-CEOs of the new company.

Once the merger is completed, the company expects mid-single-digit organic sales growth moving to the 5%-7% range over the medium term and high single-digit adjusted Ebitda growth. It further expects pretax synergies of around EUR350 million in adjusted Ebitda every year by 2026, including an annualized revenue uplift of EUR500 million.

Write to Joe Hoppe at joseph.hoppe@wsj.com

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