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.
Bringing the course in-house allows for closer monitoring of student performance and a better wor...
In Saxony, another case of African swine fever (ASF) has been confirmed in a dead wild boar in th...
The Ministry of Agriculture and Livestock (Mapa) established through Ordinance No. 898, the Susta...
