IFF acquires Frutarom for $7.1 billion
International Flavors & Fragrances (IFF) and Frutarom have entered into a definitive agreement under which IFF will acquire Frutarom in a cash and stock transaction valued at approximately $7.1 billion, including the assumption of Frutarom’s net debt.
International Flavors & Fragrances (IFF) and Frutarom have entered into a definitive agreement under which IFF will acquire Frutarom in a cash and stock transaction valued at approximately $7.1 billion, including the assumption of Frutarom’s net debt.
By combining with Frutarom, IFF is accelerating its “Vision 2020” strategy to create a global leader in taste, scent, and nutrition. The merger unites two industry-leading companies with complementary customers, capabilities, and geographic reach, resulting in more exposure to fast-growing end markets and an enhanced platform to deliver sustainable, profitable growth. In addition to IFF’s and Frutarom’s complementary flavor capabilities, Frutarom’s portfolio creates opportunities to expand into attractive and growing categories, such as natural colors, enzymes, antioxidants, and health ingredients.
“Frutarom has an extremely attractive product portfolio, including broad expertise in naturals and diverse adjacencies with capabilities beyond our core taste and scent businesses,” said Andreas Fibig, IFF chairman and CEO. “It also has significant exposure to complementary and fast-growing small- and mid-sized customers. By combining our deep R&D expertise with Frutarom’s, we are offering our customers a broader range of solutions and accelerating our growth strategy. We believe this combination will lead to faster and more profitable growth, enhance free cash flow, and generate greater returns for our shareholders.”
Frutarom is a flavors, savory solutions, and natural ingredients company, with production and development centers on six continents. It is primarily focused on natural products, which drive more than 75% of its sales. Frutarom has a strong track record of growth, with expected sales of above $1.6 billion in 2018, and its previously announced target of $2.25 billion in sales by 2020.
Following the close of the transaction, Ori Yehudai, president and CEO of Frutarom, will serve as a strategic advisor supporting Fibig. IFF will remain headquartered in New York City and will maintain a presence in Israel. The transaction is expected to close in six to nine months and is subject to approval by Frutarom shareholders, clearance by the relevant regulatory authorities, and other customary closing conditions.