International Flavors & Fragrances Inc. (NYSE:IFF), a
leading global creator of flavors and fragrances for consumer
products, today announced that it has entered into an agreement to
acquire Henry H. Ottens Manufacturing Co., Inc..
Founded more than 130 years ago, Ottens Flavors is a
privately-held company headquartered in Philadelphia, PA. Ottens
Flavors is well-known for its diverse flavors technologies and
outstanding customer service. Ottens Flavors’ customer base
includes a strong portfolio of key US-based accounts, which
complements IFF’s portfolio well.
“This acquisition is an exciting one as it’s the first step in
our redefined strategy to win where we compete,” said IFF Chairman
and CEO Andreas Fibig. “IFF and Ottens Flavors share rich
histories, world-class capabilities, and a strong commitment to
innovation. The Robinson family has built a great company over the
past six decades, and we’re looking forward to welcoming the
employees of Ottens Flavors into the IFF organization. They will be
joining a company that has a long track record of success and one
that is well-positioned to deliver sustainable profitable growth in
the future.”
Matthias Haeni, Group President, Flavors added, “Ottens Flavors
has well-established high-quality customer service capabilities
that have earned their company a reputation as one of the best
flavors organizations in the U.S. Once completed, the deal will
strengthen our operations in North America and enhance our ability
to meet the needs of our customers through a differentiated service
model geared towards enhancing collaboration and building greater
customer intimacy. We’re looking forward to welcoming Ottens
Flavors’ employees into the IFF family.”
The transaction, which will be funded from existing resources,
is expected to add approximately $60 million in revenue on an
annualized basis and be slightly accretive to IFF’s earnings per
share in 2015, excluding transaction costs. Financial terms of the
deal have not been disclosed.
The completion of this transaction is subject to clearance by
the relevant regulatory authorities and satisfaction of other
customary closing conditions. Until the transaction closes, which
is expected to occur sometime in the second quarter of 2015, Ottens
Flavors and IFF will operate as separate companies.
Morgan Stanley & Co. is acting as financial advisor to IFF,
and Cleary Gottlieb Steen & Hamilton LLP is acting as legal
advisor.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements regarding IFF’s expected future financial
position, results of operations, cash flows, financing plans,
business strategy, budgets, capital expenditures, competitive
positions, growth opportunities, plans and objectives of management
and statements containing the words such as “anticipate,”
“approximate,” “believe,” “plan,” “estimate,” “expect,” “project,”
“could,” “should,” “will,” “intend,” “may” and other similar
expressions, are forward-looking statements. Statements in this
press release concerning IFF’s business outlook or future economic
performance, anticipated profitability, revenues, expenses or other
financial items, and product or services line growth, together with
other statements that are not historical facts, are forward-looking
statements that are estimates reflecting the best judgment of IFF
based upon currently available information. Such forward-looking
statements are inherently uncertain, and stockholders and other
potential investors must recognize that actual results may differ
materially from IFF’s expectations as a result of a variety of
factors, including, without limitation, those discussed below. Such
forward-looking statements are inherently uncertain, and
stockholders and other potential investors must recognize that
actual results may differ materially from IFF’s expectations as a
result of a variety of factors, including, without limitation,
those discussed below. Such forward-looking statements are based
upon management’s current expectations and include known and
unknown risks, uncertainties and other factors, many of which IFF
is unable to predict or control, that may cause IFF’s actual
results, performance or plans to differ materially from any future
results, performance or plans expressed or implied by such
forward-looking statements. These statements involve risks,
uncertainties and other factors discussed below and detailed from
time to time in IFF’s filings with the Securities and Exchange
Commission.
Risks and uncertainties related to IFF’s acquisitions of Ottens
include, but are not limited to, uncertainties as to whether the
acquisitions will have the accretive effect on IFF’s earnings or
cash flows that it expects, the inability to obtain, or delays in
obtaining, cost savings and synergies from the acquisitions, costs
and difficulties related to the integration of Ottens’ businesses
and operations with IFF businesses and operations, unexpected
costs, liabilities, charges or expenses resulting from the
acquisitions, adverse effects on IFF’s stock price resulting from
the acquisitions, the inability to retain key personnel, and
potential adverse reactions, changes to business relationships or
competitive responses resulting from the acquisitions.
In addition to the factors set forth above, other factors that
may affect IFF’s plans, results or stock price are set forth in
IFF’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K.
Many of these factors are beyond IFF’s control and IFF cautions
investors that any forward-looking statements made by IFF are not
guarantees of future performance. IFF disclaims any obligation to
update any such factors or to announce publicly the results of any
revisions to any of the forward-looking statements to reflect
future events or developments.
About IFF
International Flavors & Fragrances Inc. (NYSE: IFF) is a
leading global creator of flavors and fragrances used in a wide
variety of consumer products. Consumers experience these unique
scents and tastes in fine fragrances and beauty care, detergents
and household goods, as well as beverages, sweet goods and food
products. IFF leverages its competitive advantages of consumer
insight, research and development, creative expertise and customer
intimacy to provide customers with innovative and differentiated
product offerings. A member of the S&P 500 Index, IFF has more
than 6,200 employees working in 32 countries worldwide. For more
information, please visit our website at www.iff.com.
International Flavors & Fragrances Inc.Michael DeVeau,
212-708-7164VP, Global Corporate Communications & Investor
RelationsorMicaela Mordkowski, 212-708-7211Manager, Flavors
Communications
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