The growing popularity of flavorings will drive more deals!

Investors are following their instincts. Azelis, a company owned by EQT that manufactures personal care fragrances and food flavorings, rose 13% on its market debut in Brussels on Friday. First, at the moment of the ranking, the company, which also manufactures chemicals for home appliances and also glues and sealants, was valued at more than $7 billion.

In 2018, EQT purchased Azelis from Apax Partners, a private equity firm. A thriving industry can be described as a fast-paced float: Givaudan, a $46 billion Swiss rival, is up 22% this year. It shouldn’t come as a shock. In areas such as health, nutrition, and high-end skincare, aromas and tastes are popular consumer goods trends. Despite rising input costs, it’s easier to pass on price increases to wealthier business customers without having to spend more money on marketing to persuade them.

Kerry, Tate & Lyle, and Royal DSM have all perfected their recipes already. Azelis could follow DSM’s lead and separate its industrials division. Plus, with Givaudan and Symrise among a handful of major players, some larger mergers and acquisitions could be in the works.

Azelis is a global leader in innovation services for the specialty chemicals and food ingredients industries. Their main expertise is specialty chemicals and food ingredients.

Small and medium-sized businesses make up the majority of customers in the life sciences and industrial chemicals end markets.

Because demand for specialty chemicals and, to a lesser extent, food ingredients falls as economic conditions deteriorate, Azelis’ business, performance, financial condition, and prospects are influenced by the global and regional macroeconomic environment, especially within the main markets of Europe and North America.

 In 2020, EMEA generated 46.5 % of Azelis revenue, the Americas 42.9 %, and Asia-Pacific 10.7 %.

Source: Reuters