Symrise AG (ETR: SY1) has reached an agreement to acquire natural ingredients producer Pinova Holdings Inc. from private equity firm TorQuest Partners for $417 million.

Symrise is paying $397 million in cash up front for Pinova. The target may receive an additional $20 million earn-out payment within 12 months. Pinova, based in Brunswick, Georgia, makes ingredients that are derived from raw materials, such as natural wood, that are used in fragrances and oral-care products. The target boasts annual Ebitda of about $37 million and $287 million in sales.

Toronto-based TorQuest bought Pinova in 2009 from Ashland Inc. for $75 million, when it was known as Hercules Specialty Resins, Ashland’s refined wood rosin and natural wood terpenes unit. In that same year Pinova picked up Renessenz from LydondellBasell Industries.

“In view of the increasing importance of natural and renewable raw materials for the fragrance industry, the product range ideally complements our portfolio,” says Symrise CEO Heinz-Jurgen Bertram. Symrise is based in Holzminden, Germany and is a supplier of ingredients that are used in fragrances, food and pharmaceutical products.

In another ingredients deal, in 2014, Archer-Daniels-Midland Co. (NYSE: ADM) acquired Symrise competitor Wild Flavors, a maker of natural food ingredients, for $3 billion.

Jefferies LLC, Jones Day and Stikeman Elliott LLP are advising Pinova.

Industrials