DSM Forms Flavor Giant With $21 Billion Deal for Firmenich (3)

Royal DSM NV will combine with Swiss ingredients maker Firmenich to form the largest maker of fragrances, completing its transformation from chemicals company into one more focused on consumer goods.

The enlarged company will have annual revenue of more than 11 billion euros ($12 billion), the companies said Tuesday. DSM shares rose as much as 13% in Amsterdam.

The deal crowns DSM’s transformation as the Dutch chemicals company sheds its engineering arm and joins up with a closely held flavor maker that has been owned by the same family for more than a century. The proposed transaction forms a challenger ...