IFF Completes Combination with Frutarom, Establishing a Global Leader in Taste, Scent and Nutrition
October 04 2018 - 6:50AM
Business Wire
Regulatory News:
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext
Paris: IFF) today announced it has completed its acquisition of
Frutarom.
The new IFF is a global leader in taste, scent and
nutrition:
- 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
- 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.
As previously announced, holders of Frutarom ordinary shares are
entitled to receive $71.19 in cash and 0.249 of a share of IFF
common stock for each Frutarom ordinary share they owned. Frutarom
shareholders will also receive a special dividend, on a per share
basis, equal to 0.249 of the per share value of IFF dividends with
a record date between May 7 and October 4, 2018. The combined
company will be headquartered in New York City and will maintain a
presence in Israel.
Effective today, the Company trades on the New York Stock
Exchange (NYSE) and Euronext Paris under the ticker symbol IFF. On
October 9, 2018, IFF shares will also trade on the Tel Aviv Stock
Exchange (TASE) under the ticker symbol IFF. The ordinary shares of
Frutarom are no longer listed for trading on the Tel Aviv Stock
Exchange or the London Stock Exchange.
Meet IFF
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext
Paris: IFF) is a leading innovator of scent, taste, and nutrition,
with over 110 manufacturing facilities, 100 R&D centers, and
33,000 customers globally. At the heart of our company, we are
fueled by a sense of discovery, constantly asking “what if?”. That
passion for exploration drives us to co-create unique products that
consumers experience in more than 150,000 unique products sold
annually. Our 13,000 team members globally take advantage of
leading consumer insights, naturals exploration, research and
development, creative expertise, and customer intimacy to develop
differentiated offerings for consumer products. Learn more at
www.iff.com, Twitter, Facebook, Instagram, and LinkedIn.
International Flavors & Fragrances Inc.521 West 57th
StreetNew York, NY 10019
T +212.765.5500F +212.708.7132iff.com
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version on businesswire.com: https://www.businesswire.com/news/home/20181004005280/en/
International Flavors & Fragrances Inc.Michael DeVeau,
212-708-7164VP, Global Corporate Strategy, Investor Relations &
CommunicationsMichael.DeVeau@iff.com
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