IFF to buy flavors and ingredients producer Frutarom for $7.1 billion

Spices & Additives

International Flavors & Fragrances (IFF), the US producer of ingredients for food products, has closed a deal with Israeli manufacturer of flavors and ingredients Frutarom to buy the company for the sum of $7.1 billion including debt.

Posted on May 09 ,11:00

IFF to buy flavors and ingredients producer Frutarom for $7.1 billion

The acquisition is part of IFF's Vision 2020 strategy to become a global leader in taste, scent and nutrition.

IFF Chairman and CEO, Andreas Fibig, said in a statement that the company's recent move will boost its sales to small and midsize companies as well in regions such as Eastern Europe.

“This transaction is a big win and a fantastic outcome for shareholders, customers and employees of both companies,” Mr. Fibig declared. “Frutarom has an extremely attractive product portfolio, including broad expertise in naturals and diverse adjacencies with capabilities beyond our core taste and scent businesses. 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, enhanced free cash flow and generate greater returns for our shareholders.”

Frutarom’s shareholders will receive for each Frutarom share $71.19 in cash and 0.249 of a share of IFF common stock, which, based on the 10-day volume weighted average price (VWAP) for IFF’s common stock for the period ending May 4, 2018, represents a total value of $106.25 per share.

“This transaction represents a major milestone for Frutarom and opens the door to a new chapter of growth and shareholder value creation,” said John Farber, Frutarom Chairman of the Board and Chairman of ICC Industries Inc., Frutarom’s largest shareholder. “I am pleased to support this historic combination of two world-class companies and look forward to the next chapter of the IFF and Frutarom story.”

Frutarom is a flavors, savory solutions and natural ingredients company, with production and development centers on six continents. It markets and sells over 70,000 products to more than 30,000 customers in over 150 countries.

Frutarom is primarily focused on natural products, which drive more than 75% of its sales. The Israeli company has a strong track record of growth, with expected sales of above $1.6 billion in 2018, and their previously announced target of $2.25 billion in sales by 2020.

 NEWSLETTER - Stay informed with the latest news!


Similar articles


Brexit is delayed, producers worry over food quality

An extension granted by the EU is pushing Bexit deadline to 12 April or 22 May, depending on the ...

Read more Read more

Russia lifts ban for cattle imports from the EU

The Russian Federal Service of Veterinary and Phytosanitary Control (Rosseljoznadzor) announced t...

Read more Read more

Chinese frozen poultry products are back on the Russian market

Poultry producers from the province of Shandong, China, are clear to export frozen poultry to Rus...

Read more Read more
Websolutions by Angular Software and SpiderClass