ISRAEL > USA based International Flavors & Fragrances Inc. is set to acquire Israel based Frutarom for $7.1 billion

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International Flavors & Fragrances Inc.(IFF) and Frutarom have entered into a definite agreement under which IFF will acquire Frutarom in a cash and stock transaction for approximately $7.1 billion including the assumption of Frutarom’s net debt. Unanimously approved by the Board of Directors of both companies, Frutarom’s shareholder will receive $71.19 in cash and 0.249 of a share of IFF common stock based on the 10- day volume weighted average price (VWAP) for IFF’s common stock for the period ending May 4, 2018, represents a total value of $106.25 per share

IFF is following its Vision 2020, a strategy to create a global leader in taste, scent and nutrition, and the new acquisition unites two industry-leading, innovative companies with complementary customers, capabilities and geographic reach, resulting in more exposure to fast growing end markets and an enhanced platform to deliver sustainable, profitable growth.

According to IFF Chairman and CEO, Andreas Fibig:

“This transaction is a big win and a fantastic outcome for shareholders, customers and employees of both companies. Frutarom has an extremely attractive product portfolio, including broad expertise in naturals and diverse adjacencies with capabilities beyond our core taste and scent businesses. It also has significant exposure to complementary and fast-growing small- and mid-sized customers. By combining our deep R&D expertise with Frutarom’s, we are offering our customers a broader range of solutions and accelerating our growth strategy. We believe this combination will lead to faster and more profitable growth, enhanced free cash flow and generate greater returns for our shareholders.”

“We have long admired Frutarom and have a great deal of respect for its team and all of its dedicated and talented employees around the globe. We look forward to welcoming Frutarom to the IFF family.”

Ori Yehudai, President and CEO of Frutarom also commented the following regarding the acquisition:

“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.”

“Today, we are extremely excited to combine Frutarom with IFF and together create global leadership in natural taste, scent and nutrition. The growth potential for the combined company is substantial and our shareholders will continue to enjoy this upside.

“Today marks the culmination of a decades-long vision to become a global leader in taste and health. This combination provides great opportunities for both our dedicated employees and highly valued customers who will enjoy our combined technologies and global reach while maximizing value for our shareholders. Frutarom and IFF are committed to maintaining a presence in Israel, and I look forward to working with Andreas and the team to ensure a seamless integration of these two terrific companies. I would like to personally thank Dr. John Farber, our Chairman, for his vision and tireless support together with the contribution of our devoted excellent employees in the transformation of Frutarom from a small, local company to a global leader in the fields of taste and health.”

John Farber, Frutarom Chairman of the Board and Chairman of ICC Industries Inc., Frutarom’s largest shareholder also added the following:

“This transaction represents a major milestone for Frutarom and opens the door to a new chapter of growth and shareholder value creation. I am pleased to support this historic combination of two world-class companies and look forward to the next chapter of the IFF and Frutarom story.”

About IFF

Established in 1833, International Flavors & Fragrances Inc. has been a  leading innovator of sensorial experiences that move the world. IFF employs around 7300 employees around the world and it has reported $3.4 billion. Headquartered in USA, IFF together with its subsidiaries, manufactures flavors and fragrances for use in various consumer products operating in two segments, Flavors and Fragrances

About Frutarom

 Headquartered in Israel, Frutarom’s product portfolio consists of innovative and integrated solutions combining taste and health, natural and clean label products. A leading global company operating in the global flavors and natural fine ingredients market, Frutarom sells over 70,000 products to more than 30000 customers in over 150 countries. . Frutarom has a strong track record of growth selling their products for industries such as food and beverages, flavor and fragrance extracts, pharmaceutical, nutraceutical, health food, functional food, food additives and cosmetics, with expected sales of above $1.6 billion in 2018, and their previously announced target of $2.25 billion in sales by 2020.