* Price tag could rise to $417 mln depending on performance
* Pinova makes perfume ingredients from natural sources
* Symrise shares extend gains
(Adds Symrise strategy, seller Torquest, deal multiple)
FRANKFURT, Sept 21 (Reuters) - Germany's Symrise is buying
Pinova Holdings, a U.S. maker of perfume ingredients from
natural sources, for at least $397 million from buyout firm
TorQuest, part of a push into plant-based ingredients for its
fragrances and flavours.
Symrise has a focus on plant-based substances, which are
preferred by many consumer goods makers over petrochemical-based
ingredients. The company expanded into ingredients businesses to
have a better control over manufacturing practices.
The deal reflects "the increasing importance of natural and
renewable raw materials for the fragrance industry," Symrise
Chief Executive Heinz-Juergen Bertram said on Monday.
Pinova was created in 2010 when TorQuest acquired Ashland's
ASH.N refined wood rosin and natural wood terpenes unit and
combined it later with LyondellBasell's Flavors & Fragrances
business, now called Renessenz.
The price tag amounts to as much as 11.1 times Pinova's 2014
adjusted earnings before interest, taxes, depreciation and
amortisation (EBITDA) of $37.4 million. That compares with a
multiple of 17.3 that Symrise is trading at, 12.7 for rival IFF
IFF.N or 17.2 times for Switzerland's Givaudan GIVN.VX ,
another competitor.
Subject to conditions to be met within 12 months, Canada's
TorQuest will receive a premium of $20 million for a total price
of up to $417 million.
The buyer's stock extended gains and was up 2.1 percent at
1158 GMT.
Symrise expects annual synergy effects worth 20 million
euros ($22.6 million) from the deal by 2020.
($1 = 0.8870 euros)