IFF completes Frutarom acquisition

11 Oct 2018

IFF has completed its acquisition of Frutarom, anticipating that the combination will translate into accelerated financial performance, with robust top and bottom-line growth.

IFF completes Frutarom acquisition

IFF has completed its acquisition of Frutarom.

“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 realise $145 million in cost synergies by rationalising procurement, optimising global footprint and streamlining overhead expenses by the third full year after the completion of the merger. The company will be prioritising repayment of debt and anticipates to be less than 3x net debt to EBITDA in 18-24 months to retain its investment grade rating.

The combined company will be headquartered in New York City and will maintain a presence in Israel.

Related categories

Related tags

Beverage Sustainability

Related news

Diageo unveils plans for €200 million carbon-neutral brewery in Ireland

Diageo unveils plans for €200 million carbon-neutral brewery in Ireland

1 Aug 2022

Diageo has unveiled plans for a €200 million carbon-neutral lager and ales brewery in Ireland – the country’s first.

Read more 
Shifting trends: Analysing the impact of high inflation in India

Shifting trends: Analysing the impact of high inflation in India

25 Jul 2022

Despite food and beverage categories in India feeling the pinch of increasing inflation, the overall outlook remains upbeat as governmental support steps in and evolving consumer purchasing patterns shape the sector.

Read more 
Gen Z consumers are thirsty for variety in beverages

Gen Z consumers are thirsty for variety in beverages

31 May 2022

As Gen Z consumers gain disposable income, they are looking to quench their thirst with beverage brands that are clean, sustainable and socially responsible, according to a report from the global consumer trend forecaster WGSN.

Read more 
Tea flavour innovation in China unites tradition with modernity

Tea flavour innovation in China unites tradition with modernity

13 Apr 2022

Chinese tea brands are innovating with new flavours, blends and formats, and even making a foray into food with tea-flavoured food and drink launches.

Read more 
Low- and no-alcohol beverages see significant growth globally

Low- and no-alcohol beverages see significant growth globally

11 Apr 2022

Alcohol-free and low-alcohol beverages are helping drive growth for many alcohol manufacturers that have been struggling to adapt to the changing tastes of the market in recent years.

Read more 
Brand licensing deals rise post-pandemic as consumers seek familiar and healthier products

Brand licensing deals rise post-pandemic as consumers seek familiar and healthier products

8 Apr 2022

Longer-term brand licensing deals between food companies have become more popular in recent times – a trend set to continue and flourish, partly thanks to the pandemic, licensing experts told Ingredients Network.

Read more 
Baby formula brands innovate with clean label launches

Baby formula brands innovate with clean label launches

7 Apr 2022

Clean label baby food is receiving a significant amount of development, with two recent brands ByHeart and Bobbi launching formulations certified by the Clean Label Project with a Purity Award.

Read more 
Consumers seek ashwagandha-fueled relaxation in beverages

Consumers seek ashwagandha-fueled relaxation in beverages

28 Mar 2022

Ashwagandha has been used in India for centuries, and it is only in recent years that consumers in the US and now Europe are realising its health benefits, with manufacturers starting to add this adaptogen to beverage formulations.

Read more 
A new brew: Ayurvedic coffee in India, adaptogenic coffee from Finland

A new brew: Ayurvedic coffee in India, adaptogenic coffee from Finland

10 Mar 2022

Coffee is probably one of the world’s most popular functional beverages, providing millions with their daily caffeine hit. However, some brands are taking its functional benefits further by adding in botanicals, vitamins, and other nutrients.

Read more 
Coca-Cola is spreading itself outside beverages to expand its market

Coca-Cola is spreading itself outside beverages to expand its market

28 Feb 2022

With 130 years of experience behind the brand Coca-Cola, it would be easy to imagine that the brand would be comfortably reliant on one of its 15 billion-dollar brands that make up the portfolio of one of the largest beverage companies in the world.

Read more