IFF Completes Frutarom Acquisition

International Flavors & Fragrances Inc. has completed its acquisition of Frutarom.
According to the company, the new IFF is a global leader in taste, scent and nutrition. Moreover, the deal:

• Creates a differentiated portfolio with an increased focus on naturals and health and wellness as well as more comprehensive solutions;
• Provides opportunities to expand into attractive and fast-growing categories, such as savory solutions, natural colors, natural food protection and health ingredients;
• Broadens complementary and growing customer base, including enhanced exposure to the fast-growing small- and mid-sized customers, such as private label;
• Establishes enhanced platform to deliver sustainable, profitable growth, and
• Provides strong value creation opportunities to maximize shareholder value – including cross-selling benefits as well as cost synergies.


“The coming together of IFF and Frutarom is a momentous achievement. We are excited to be moving forward as one company and pursuing new opportunities that benefit all our stakeholders around the globe,” said IFF Chairman and CEO Andreas Fibig. “Over the past several months, our integration planning teams have been working to ensure that we capture the best of both companies and create a seamless and efficient transition to achieve both our operational and financial targets for this combination. Today, we are celebrating the creation of a new IFF with even greater aspirations as a leader in taste, scent and nutrition. On behalf of everyone at IFF, we welcome Frutarom and its talented team, and look forward to working closely with all employees to continue to deliver winning products to our customers and maximizing long-term value for our shareholders.”


IFF anticipates the combination with Frutarom will translate into accelerated financial performance, with robust top and bottom-line growth. The company expects to generate an average sales growth of 5-7%, and 10% adjusted cash EPS growth, on a currency neutral and pro-forma basis, over the 2019 to 2021 period. IFF also believes it will realize $145 million in cost synergies by rationalizing procurement, optimizing global footprint and streamlining overhead expenses by the third full year after the completion of the merger. The company will be prioritizing repayment of debt and anticipates to be less than 3X net debt to EBITDA in 18-24 months to retain its investment grade rating.