The acquisition announcement came Wednesday: “I am delighted to be welcoming Agilex Fragrances within the Firmenich Group,” Patrick Firmenich, chairman of the board, tells the press.
“With their established customer base, recognized best-in-class service levels and proven operational excellence for mid-sized customers in North America, they perfectly complement our Fragrance business,” he explains in a media release about the deal.
Firmenich, headquartered in Geneva, Switzerland, is the largest privately owned flavors and fragrance company in the world. The company serves over 100 markets globally, operates 35 manufacturing sites, employs over 6,000 people, and according to the release, “had an annual turnover of 3.2 billion Swiss Francs at end June 2016.”
“By joining the Firmenich Group, with its global reach and cutting edge creativity and research, we will take our company to new heights,” believes Ray Hughes, CEO of Agilex Fragrances. “Our shared ambition is to design unique fragrances for our customers while furthering our industry-leading agility and speed-to-market.”
Agilex has been in business since 1999. And up until 2007 was known as Flavor and Fragrance Group Industries. In December of 2012 the company was bought by the private equity firm MidOcean Partners. Between then and now, Agilex itself grew by acquiring Oriental Aromatics in 2014 (and picking up some US customers from CPL that year as well). Agilex acquired Airabella in 2015, and Creative Fragrances in 2016.
Agilex manufactures fragrance products, delivery systems, etc. for air care, home care, and personal care, as well as for the industrial and institutional industry.
As part of Firmenich, Agilex will (at least initially) carry on as a stand-alone business. The deal will nonetheless enable Agilex to benefit from the global reach and creative capabilities of Firmenich. Gilbert Ghostine, the acquiring company’s CEO, affirms as much in his remarks to the press: “I look forward to seeing how our global creativity and innovation capabilities, as well as, consumer understanding will open up new opportunities for Agilex and their customers,” he says, noting also that “Agilex’s fit-for-purpose business model is a winning blueprint to serve mid-sized businesses, combining proprietary, tailored solutions with an agile service model.”
Agilex brings one more advantage to the table. The company recently opened a new manufacturing center in New Jersey. The facility boasts the “latest automated compounding technology and flexible processes.” Because of this, the press release suggests that “Agilex Fragrances will take its innovation and turnaround times to new levels of excellence.”
The deal is expected to close this year. Before that happens, as is typical, the acquisition requires regulatory approval. And as of now, no financial terms have been made public.
This article was updated on 19-June-2017. The original article erroneously stated that Agilex had acquired CPL Aromas in 2014. In fact CPL only divested a small number of US customers to Agilex that year. And CPL continues to be wholly owned by the Pickthall family.