Symrise AG (SY1), the fourth-largest maker of flavors and fragrances, will consider bidding for Wild Flavors GmbH as Chief Executive Officer Heinz-Juergen Bertram pursues deals to accelerate growth.
The German company is participating in the auction of another ingredients company Diana Value Co., Bertram told journalists at a press briefing today, confirming an earlier report by the Financial Times. Wild Flavors, owned by Hans-Peter Wild and buyout firm KKR & Co., may fetch about $1.5 billion.
For an acquisition bigger than 1 billion euros ($1.39 billion), Symrise would sell shares to investors to raise cash, Chief Financial Officer Bernd Hirsch said today at the sidelines of the company’s earnings conference in Frankfurt. About 300 million euros to 400 million euros debt could be used, Hirsch said.
“You can see that we wouldn’t shy away from bigger targets,” Bertram said today. “We always have five to seven potential acquisitions on our list. Some are bigger and some are small to medium-sized.”
The company could raise cash by selling shares in an accelerated bookbuilding process, Hirsch said today.
Symrise boosted its stake in probiotics maker Probi AB (PROB) to 30.03 percent in January, triggering a mandatory bid for the whole of the Swedish company. The German company didn’t offer a premium on Probi’s share price and the offer closes on March 12.
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