IFF completes Frutarom acquisition11 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 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.
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