USA – International Flavors & Fragrances Inc., an American corporation producing flavors and fragrances, has announced it has completed its acquisition of Frutarom, and is now a global leader in taste, scent and nutrition.
According to the company, it anticipates the combination with Frutarom will translate into accelerated financial performance, with robust top and bottom-line growth.
The company added that the deal will create a differentiated portfolio with an increased focus on naturals and health and wellness as well as more comprehensive solutions.
It will also provide opportunities to expand into attractive and fast-growing categories, such as savory solutions, natural colors, natural food protection and health ingredients.
The acquisition broadens complementary and growing customer base, including enhanced exposure to the fast-growing small- and mid-sized customers, such as private label.
It will establish enhanced platform to deliver sustainable, profitable growth, while providing 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.”
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 US$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 added that it 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.
As previously announced, holders of Frutarom ordinary shares are entitled to receive US$71.19 in cash and 0.249 of a share of IFF common stock for each Frutarom ordinary share they owned.
The combined company will be headquartered in New York City and will maintain a presence in Israel.