SYMRISE AG 
By PARIS/FRANKFURT (Reuters) - Germany's Symrise (>> Symrise AG), the world's fourth-largest scents and flavours company, has agreed to buy French food ingredient maker Diana Group from private equity firm Ardian, a deal that will expand its activities into the pet food market.
Ardian said on Monday the transaction valued Diana Group at around 1.3 billion euros (1.08 billion pounds). The deal still needs approval by employee representatives and competition watchdogs.
Symrise, the world's fourth largest scents and flavours company, said on Saturday that the acquisition, funded through a mixture of debt and equity, should be fully earnings per share-accretive from 2015 onwards.
It said the deal gave Diana Group an "attractive valuation" of around 14 times 2013 earnings before interest, tax, depreciation and amortisation (Ebitda).
Reuters last month reported that Diana Group had attracted bids worth more than 1.2 billion euros including debt from Symrise and Japan's Ajinomoto (>> Ajinomoto Co Inc). The sources said buyout firms CVC Capital Partners
Diana, a leading supplier to the nutrition, food, pet food, aquaculture and cosmetics industries, is based in Vannes in western France.
Ardian became Diana's main shareholder in 2007 to help it expand across Asia, the United States and Eastern Europe. Since then, staff and revenue have nearly doubled - Diana had 2,000 employees in 23 countries and sales of 451 million euros last year.
Symrise said the deal would enable it to expand its position in the flavour and nutrition markets and broaden its activities into the pet food markets.
Shares in Symrise were down 4.2 percent at 34.34 euros at 0914 GMT. The company has sought growth partly via acquisitions, and has recently raised its stake in the Swedish probiotics specialist Probi.
JP Morgan (>> JPMorgan Chase & Co.) and Lazard (>> Lazard Ltd) advised Ardian on the sale.
(Reporting by Natalie Huet and Marilyn Gerlach; Editing by Andrew Callus and Jane Merriman)
