Cognis has announced the sale of its Fragrances & Specialties business (Cognis F&S) to Japanese speciality chemicals firm Kao Chemicals.
The German company said the divestment of its aroma chemicals and fragrance compounds business was part of its strategy to focus on core activities.
Kao Chemicals said it intended to incorporate the unit into its own aroma chemicals and fragrance business, and now expects to make up to Y15 billion in net sales (approximately €120 million) from these activities.
Commenting on the sale, Cognis chief executive officer Antonio Trius said: "Cognis has successfully developed its Fragrances & Specialties business into a highly specialised and profitable niche player which achieved sales of €30 million in 2001".
Equally optimistic, president and CEO of Kao Corporation Takuya Goto commented: "This acquisition will enhance profitability of Kao's aroma chemicals business and benefit overall activities in our chemical products division towards achievement of profitable growth".
In 2002, Cognis reported sales of €3.1 billion and operating profit before depreciation, amortisation and exceptional items (EBITDA recurring) of €393 million.
Besides oleochemicals with natural fats and oils derived from coconuts and palm, Kao claims to supply over 1,000 kinds of speciality chemicals to various industries.