KDSKF - Aristotle Capital - DSM-Firmenich AG: Current Valuation Doesn't Fully Appreciate The Firmenich Merger

2024-05-16 08:00:00 ET

Summary

• DSM-Firmenich was added to the ADR portfolio after the merger of DSM and Firmenich.
• DSM-Firmenich is a Dutch-Swiss multinational corporation that produces flavors, fragrances, and active ingredients for various products.
• The company has undergone a transformation, divesting cyclical businesses and investing in specialty nutrition products, making it an attractive investment with potential catalysts for growth.
• We believe the current valuation reflects dsm-firmenich's historical status as a commodity conglomerate and does not fully appreciate the improvement in quality that can be created as a result of the merger with Firmenich.

The following segment was excerpted from this fund letter.

DSM-Firmenich AG ( KDSKF )

During the quarter, we invested in DSM-Firmenich.

Following the merger of DSM and Firmenich, an ADR was reintroduced, allowing us to add the company to the ADR portfolio. We have owned the company for clients invested in our ordinary share portfolio since the fourth quarter of 2022....

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