Global megadeal as Americas flavour giants buys Frutarom for USD $7 billion
International Flavors & Fragrances is it to pay USD $7 billion to the Haifa-based Israeli manufacturer Frutarom, making the combined company the largest flavoring company in the world.
It is the second largest ever acquisition of an Israeli company following Intel Corp’s purchase last year of Mobileye, a Jerusalem-based developer of advanced vision and driver assistance systems, for $15.3 billion.
Frutarom has until now been the sixth-largest food flavorings maker in the world. Its shares have surged some 64 percent in the past 12 months and it posted record sales of USD $1.36 billion in 2017.
“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,” CEO and president Ori Yehuda said in the statement, adding that both companies “are committed to maintaining a presence in Israel.”
The companies valued the total deal, including a cash and stock transaction, at approximately $7.1 billion including the assumption of Frutarom’s net debt.