International Flavors & Fragrances (IFF) jumped into a rush of dealmaking in the food-flavoring industry, agreeing to buy Israel’s Frutarom Industries for US$7.1 billion including debt.
In acquiring a creator of alfalfa and wild cherry bark flavors, IFF is tapping the fast-growing market for natural food ingredients. The purchase, IFF’s biggest ever, will make the New York-based company the industry’s No. 2 player, displacing closely held Firmenich International SA and trailing Givaudan SA.
“Frutarom has an extremely attractive product portfolio, including broad expertise in naturals,” IFF CEO Andreas Fibig said in a joint statement Monday, May 7, with the Haifa, Israel-based company. “We believe this combination will lead to faster and more profitable growth.”
The acquisition requires the approvals of regulators and Frutarom shareholders. ICC Industries Inc, Frutarom’s largest shareholder with a 36% stake, has agreed to vote for the transaction, the companies said. Closing is expected in six to nine months.
Full Content: Reuters
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