Here's How DSM Aspires To Become Leading Player In Food and Health Products Market - Avient (NYSE:AVNT), Lanxess (OTC:LNXSY)

Netherlands-based Dutch specialty chemicals maker DSM forged deals to scoop Swiss flavor and fragrance maker Firmenich to become a leading player in the budding food ingredients and health products markets.
As previously planned, DSM also looks to sell its engineering plastics division signaling its exit from the industrial materials market, Reuters reports.
DSM shareholders will get a 65.5% stake in a new group called DSM-Firmenich. The unlisted Firmenich owners will receive a 34.5% stake of the combined entity plus €3.5 billion in cash from DSM.
DSM also agreed to sell its engineering plastics division to German peer Lanxess Ag LNXSY and private-equity firm Advent for €3.85 billion ($4.14 billion), including debt.
DSM and Firmenich said the merged group, likely to be formed in the first half of 2023, could see organic annual sales growth of 5% - 7% while realizing yearly cost savings of €350 million.
The new company will have dual headquarters in Kaiseraugst near Basel, Switzerland, and in the Dutch city of Maastricht.
The company's legal domicile will be in Switzerland, but the shares will trade on the Euronext Amsterdam exchange.
DSM's nutrition division's sales rose 10% to €7 billion in 2021. DSM's total sales were €9.2 billion in 2021.
Firmenich reported sales of 4.5 billion Swiss francs ($4.7 billion) in 2021.
DSM and Firmenich realized an adjusted core profit margin (EBITDA) of 20%.
DSM previously agreed to sell its protective materials business, part of the materials division for sale, to Avient Corp AVNT for $1.48 billion, as per Reuters.

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