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Flavourings boom will drive more deals

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LONDON, Sept 17 (Reuters Breakingviews) – Investors are following their noses. On Friday EQT-owned (EQTAB.ST) Azelis (AZE.BR), which makes private care fragrances and meals flavourings, rose 13% on its market debut in Brussels. The listing valued the corporate, which additionally makes chemical compounds for family merchandise in addition to glues and sealants, at over $7 billion.

Private fairness group Apax Partners offered Azelis to EQT in 2018. A speedy float might be defined by a blossoming sector: $46 billion Swiss rival Givaudan (GIVN.S) is up 22% this 12 months. No surprise. Smells and tastes are massive client items traits in sectors like well being, vitamin and fancy skincare. Even although their enter prices are rising, worth rises are simpler to move on to richer enterprise clients with out ramping up advertising spend to steer them.

Kerry (KYGa.I) learn more , Tate & Lyle (TATE.L) and Royal DSM (DSMN.AS) have already refined their recipes. Azelis might copy DSM and cut up off its industrials unit. Plus, with Givaudan and Symrise (SY1G.DE) amongst a handful of huge gamers, some greater M&A may very well be cooking. (By Dasha Afanasieva)

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Editing by George Hay and Oliver Taslic

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