Givaudan will purchase Quest

Givaudan will purchase Quest

Switzerland's Givaudan said it has agreed to buy the Quest flavors and fragrance unit of Imperial Chemical Industries PLC for $2.28 billion to become the world's largest maker of scents used in perfume.

Quest, based in Naarden, the Netherlands, had sales of $1.1 billion last year and a trading profit of $98.7 million.

"Since Quest cannot become a top three player in its market, ICI has readily acceded to an offer," said analysts at Fortis Investment Research.

John McAdam, ICI's chief executive, said Wednesday that the sale was a major step in realigning ICI.

Givaudan, based in Geneva, said it would finance the acquisition by debt and by issuing up to $800 million in new shares.

"It's a good price, given Quest's progress in the past few years and its improvement in profitability," Givaudan Chief Executive Officer Gilles Andrier said.