By Neil MacLucas
ZURICH--Givaudan SA (GIVN.VX) said on Monday that it has acquired Swiss cosmetics ingredient maker Induchem Holding AG to expand its fragrance sector business.
Geneva-based Givaudan, which supplies flavors to food companies such as Nestlé SA (NESN.VX), Mondelez International Inc. (>> Mondelez International Inc) and Unilever NV (>> Unilever N.V. (ADR)), declined to disclose financial terms of the deal, but said it would be financed from existing resources.
Based in Volketswil, Switzerland, and with operations in France and the U.S., Induchem employs 65 workers. Givaudan said Induchem would have contributed around 25 million Swiss francs ($26.1 million) in sales to its earnings last year.
Givaudan, which last week lowered its average sales growth target to 4% to 5%, said it will look at acquisitions as part of its business strategy for the coming five years.
In its latest results in July, Givaudan said sales from its fragrance unit were flat in the first six months of 2015 when currency effects were removed, but fell 1.1% in Swiss franc terms. The flavors division sales, when denominated in francs, rose 0.4%, helped by growth in Asia and Latin America.
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