(Reuters) - German flavour and fragrance maker Symrise AG said on Monday it has made a bid approach for Swedencare AB, just days after acquiring a nearly 30% stake in the Swedish pet healthcare firm.
Symrise said it made a last and final offer of 37.50 Swedish crowns ($3.46) a share in cash for Swedencare, valuing the company at 5.9 billion Swedish crowns ($543.77 million). This represents a 10.86% discount over Swedencare's closing share price.
Following its acquisition of a 30% stake in Swedencare, Symrise is now obligated under Swedish law to make an offer for the remaining shares, marking a strategic move to enhance its pet nutrition business.
"Our full and fair offer for Swedencare's shareholders reflects Symrise's strong belief that Symrise is the best possible majority owner for Swedencare going forward," Heinz-Juergen Bertram, chief executive officer of Symrise, said in a statement.
Symrise, whose fragrances go into the perfumes of French luxury giants LVMH (EPA:LVMH) and Kering (LON:0IIH), has enjoyed high demand for pet-food ingredients amid a pandemic-fuelled adoption boom.
Last year, Bertram said the company had between five and 10 acquisition targets on its radar, with a plan to double the unit's annual sales in the medium term.
In April, Symrise posted a jump in first-quarter sales, with its pet food sub-division continuing to record high double-digit growth rates.
($1 = 10.8539 Swedish crowns)