EQT acquires Flavors and Fragrances manufacturer Haarmann & Reimer From Bayer

EQT Northern Europe Private Equity Funds (EQT) have signed an agreement with
Bayer to acquire the world’s fifth largest manufacturer of flavors and fragrances, Haarmann & Reimer. EQT will, at the same time, acquire shares in the competitor Dragoco and the two Holzminden-based manufacturers of flavors and fragrances, Haarmann & Reimer and Dragoco, will subsequently be merged into a new company, operating under a new name.

EQT will have a controlling stake of 76% in the new company. In addition, Dragoco CEO Horst-Otto Gerberding will hold a 22% stake and NordLB a 2% stake. The merger is subject to approval by the cartel authorities.

The merger will create a company with sales of EUR 1,245 million, which will join the ranks of the top industry players. The CEO of Dragoco, Horst-Otto Gerberding, will head the new company. Lambert Courth, President and CEO of Haarmann & Reimer, will return to Bayer after the conclusion of the transaction in order to assume new responsibilities there. The merged company will have 5,800 employees at some 30 production facilities around the world. The headquarter will remain in Holzminden.

Both Haarmann & Reimer and Dragoco are successful global players in the areas of fragrances and flavor compositions, aroma chemicals and cosmetic ingredients. The new company will have a market share of approximately 11% of the EUR 11 billion global market. The merged company will seek to considerably expand its global position. The broadened product portfolio and strengthened R&D resources are among the most important growth factors.

EQT is acting as a catalyst in this process to support the growth strategies of two competitors.

“The merger will bring together complementary structures and resources in a new company that will combine Haarmann & Reimer’s high technological standards and proven strengths in the field of R&D with the creativity and innovativeness of Dragoco. As a result, the new company will be in a better position with large customers in the food, perfume and cosmetic sectors”, emphasized Horst-Otto Gerberding, CEO of Dragoco.

“EQT is proud to be the catalyst in the merger of these two successful companies. Both Haarmann & Reimer and Dragoco have had growth rates above industry average over the past years and EQT looks forward to support a continuous growth path for the new company”, says Udo Philipp, partner at EQT Partners, the investment adviser to the EQT Funds.

The H&R Group (www.haarmann-reimer.com) is a global player in the sector with companies on all five continents and a total of 3,800 employees. In 2001, the H&R Group reported sales of EUR 872 million.

The Dragoco Group (www.dragoco.com) is a global company with more than 2,000 employees. Sales 2001 were EUR 372 million.

Further information is available from:

Mr. Udo Philipp, Partner, EQT Partners GmbH, +49 89 25 54 99 22
Mr. Hans Moock, Partner EQT Partners GmbH, +49 89 25 54 9920
Mrs. Caroline Rosén Partner, IR & Communication, EQT Partners AB, +46 70 589 00 37

EQT is a group of private equity funds with equity commitments exceeding
EUR 3 billion and is sponsored by Investor AB, the publicly listed holding
company of the Wallenberg group. EQT Partners, acting as investment advisor to
all EQT funds, has offices in Stockholm, Copenhagen, Helsinki and Munich. The
business concept of EQT is realised by acquiring and developing high-quality
medium sized companies in Northern Europe. EQT serves as an active owner and
works in close co-operation with the management of the companies it acquires,
to develop and implement value-enhancing strategies.
 

www.eqt.se