Symrise fetches 400 mln euros in capital increase
German scents and flavorings group Symrise AG fetched 401 million euros ($550 million) in a capital…German scents and flavorings group Symrise AG fetched 401 million euros ($550 million) in a capital increase to help finance its 1.3 billion euro acquisition of French food ingredients maker Diana Group.
It sold 11.15 million new shares, about 10 percent of its equity capital, in an accelerated bookbuilding organised by JP Morgan and Commerzbank at 36 euros ($49.34) apiece, the company said in a statement on Wednesday.
Last month Symrise announced the acquisition of Diana for 1.3 billion euros including debt to narrow the gap on top rival Givaudan and expand in natural ingredients and pet food.
The purchase will increase Symrise's market share and make it the world's third-biggest scents and flavours company - up from number four. It also brings the company closer to its goal of boosting annual sales by around 1 billion euros by 2020.
The deal values Diana at 14 times its 2013 earnings before interest, tax, depreciation and amortization (EBITDA). Symrise trades at 12.3 times its expected EBITDA.