Givaudan to acquire natural fragrances creation house Custom Essence
16 Nov 2021 --- As part of a 2025 strategy to expand the capabilities of its fragrance business, Givaudan has reached an agreement to acquire Custom Essence, a US-based fragrance creation house catering to the demand for naturality in perfumes.
While the terms of the deal will not be disclosed, Custom Essence’s business would have represented approximately US$40 million of incremental sales to Givaudan’s results in 2020 on a pro forma basis.
Givaudan expects the transaction to close in Q4 2021 and will fund the transaction from its existing resources.
“The acquisition of Custom Essence fits perfectly with our 2025 strategy to expand our presence with local and regional customers and grow our capabilities in natural perfumes,” says Maurizio Volpi, president of Givaudan Fragrance & Beauty.
“Custom Essence will bring true expertise in managing a fast growing customer segment, as well as valuable know-how in formulating natural fragrances.”
With this move, the flavor and fragrance titan intends to strengthen its access to regional customers in North America.
Enhancing natural fragrance business
Founded in 1981, Custom Essence is a family owned business based in New Jersey, specializing in the formulation of natural fragrances and creatio perfumes across the personal care category.
“We are proud to join Givaudan and to bring in our knowledge in natural fragrance creation, as well as our reach to local and regional customers,” says Maurizio Volpi, President of Givaudan Fragrance & Beauty.
“Givaudan’s technology, regulatory, supply chain and international manufacturing support will enable us to scale quickly to provide even better value to our customers.”
Earlier this month, Givaudan unveiled its Z-biome Platform, hailed as “the first microbiome-centered fragrance technologies in the industry.”
Last October, the supplier launched DigiPulse to decode consumers’ online spontaneous comments about fine fragrances.
Edited by Benjamin Ferrer
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