DSM is merging with Firmenich in a deal valued at roughly $21 billion. The new entity, which will be called DSM-Firmenich, will combine the strengths of the two companies: biotechnology and nutrition from DSM and molecular technology and flavors and fragrances from Firmenich. DSM-Firmenich will have a dual headquarter in Kaiseraugst, Switzerland, and Maastricht, The Netherlands. The merger is expected to be completed in the first half of 2023.
The merger will take place in a dual procedure involving a public offer for DSM shares in exchange for DSM Firmenich shares (exchange ratio 1:1). The Firmenich family shareholders will exchange their shares in the existing company for shares in the new company and will also receive an estimated €3.5 billion in cash. DSM shareholders will own a total of 65.5% and the Firmenich shareholders will own a total of 34.5% of DSM-Firmenich.
The new company’s Executive Committee will have a balanced team drawn from both DSM and Firmenich. The existing executive management teams of DSM and Firmenich will remain unchanged until the completion of the merger. Geraldine Matchett and Dimitri de Vreeze will be Co-CEOs. Currently Co-CEOs of DSM, they will continue to hold additional CFO (Geraldine) and COO (Dimitri) responsibilities respectively for the future combined company. Emmanuel Butstraen will be Chief Integration Officer, overseeing the merger.
DSM-Firmenich will have 15 R&D facilities, which will be led by Sarah Reisinger, a US national with a Ph.D. in microbiology from the University of California, Berkeley, USA. She has previously served in leadership roles at Ginkgo Bioworks and Amyris and joined Firmenich in 2018 to lead the company’s biotechnology and process engineering teams before taking on her current position of Chief Research Officer in 2021.
DSM-Firmenich will have four complementary businesses, each led by a member of the future Executive Committee: Perfumery & Beauty (led by Ilaria Resta, who is currently Firmenich’s President of Perfumery), Food & Beverage/Taste & Beyond (led by Patrick Niels, who is currently DSM’s Executive Vice President Food & Beverage), Health, Nutrition & Care (led by Philip Eykerman, who is currently DSM’s Executive Vice President Health), Nutrition & Care, and Animal Health & Nutrition (led by Ivo Lansbergen, who is currently DSM’s Executive Vice President Animal Health & Nutrition).