US giant IFF to buy Israel's Frutarom for $7 bn

International Flavors & Fragrances said Monday it agreed to buy Israel's Frutarom for more than seven billion dollars (5.9 billion euros) in a deal the US giant said would create a world leader.

"IFF will acquire Frutarom in a cash and stock transaction valued at approximately $7.1 billion, including the assumption of Frutarom's net debt," the New York-based corporation said in a statement.

The purchase of Frutarom—whose products are used in the food, pharmaceutical and cosmetic industries—creates "a global leader in taste, scent and nutrition," it added.

The Times of Israel newspaper said that it would be the second-largest foreign acquisition of an Israeli company, after last year's $15-billion purchase of Israeli firm Mobileye by Intel.

A Frutarom statement to the Tel Aviv Stock Exchange said that the company expected its 2018 sales to rise to at least $1.6 billion, from $1.36 billion last year.

The combined is expected to have revenue of around $5.3 billion in 2018, according to IFF, which had sales of $3.4 billion in 2017.

IFF said the deal represented a premium of 11.6 percent over the last Frutarom share price.

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© 2018 AFP

Citation: US giant IFF to buy Israel's Frutarom for $7 bn (2018, May 7) retrieved 21 April 2021 from
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