Food Business News - May 15, 2018 - 21
International Flavors & Fragrances
to acquire Frutarom for $7.1 billion
continue to enjoy this upside."
The transaction is expected to close
in six to nine months and is subject to approval by Frutarom shareholders as well
as customary closing conditions. FBN
combine Frutarom with I.F.F. and together create global leadership in natural
taste, scent and nutrition. The growth
potential for the combined company is
substantial, and our shareholders will
NEW YORK - International Flavors &
Fragrances (I.F.F.) has entered into an
agreement to acquire Frutarom, Tel Aviv,
Israel, for approximately $7.1 billion. The
transaction has been approved by the
boards of directors of both companies,
and Frutarom's shareholders will receive
for each Frutarom share $71.19 in cash
and 0.249 of a share of I.F.F. common
stock, which represents a total value of
$106.25 per share.
Frutarom is a manufacturer of flavors and savory solutions. The company
primarily is focused on natural ingredients, which generate more than 75%
of annual sales and are forecast to be
approximately $1.6 billion in 2018.
"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, chairman and chief executive officer of I.F.F. "It also has significant exposure to complementary and fast-growing
small- and mid-sized customers.
The combination of I.F.F. and Frutarom is expected to generate approximately $5.3 billion in annual sales once the
transaction is completed. I.F.F. expects
the acquisition to create an estimated
$145 million in synergies by the third
full year following the closing of the
Following the close of the transaction, Ori Yehudai, president and c.e.o.
of Frutarom, will serve as a strategic
adviser supporting Mr. Fibig.
"Frutarom has had a fascinating
journey of accelerated growth, far above
our industry benchmarks through our
investment in unique technologies and
focus on natural products in the growing
world of health and taste," Mr. Yehudai
said. "Today, we are extremely excited to
May 15, 2018
Food Business News