IFF has agreed to sell its Flavor Specialty Ingredients business to leading UK-based private equity firm Exponent for $220 million.
WHO: IFF's Flavor Specialty Ingredients (FSI) is based in the UK and is a leading manufacturer of specialty base aromas with a broad range of more than 1,000 aroma chemicals and natural extracts, which provide inputs primarily to the flavor market. FSI includes four dedicated manufacturing and distribution facilities at Teesside and Hartlepool, United Kingdom; Cincinnati, United States; and Pucheng, China, with additional points of distribution in Mexico, Brazil, and Hong Kong. With approximately 340 employees, IFF's FSI business serves more than 970 customers and generated more than $100 million in revenue over the last 12 months.
WHY: This transaction underlines Exponent's specialist expertise in corporate carve-outs. The acquisition also builds on the firm's strong track record of investing in market-leading Food & Beverage businesses. Exponent will support the company's ambitions to grow significantly, both organically and through acquisitions. Its global operations and broad capabilities mean it is well-positioned to capitalize on growth in the multibillion-dollar base aroma market, driven by global megatrends such as the demand for natural flavor solutions.
IN THEIR OWN WORDS: "Aligned with our strategy, we're continuously evaluating our portfolio to identify opportunities to strengthen our financial profile," said IFF CEO Frank Clyburn. "The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns. We appreciate the contributions of our FSI colleagues, who have shared our commitment to quality and customer service. We will work closely with Exponent to have a successful transition and look forward to FSI's bright future."
Mark Taylor, Partner at Exponent, said, "We are delighted that we have agreed to acquire the FSI division from IFF. FSI is a global leader in the base aromas market, with a strong customer base and a differentiated portfolio of Natural and Aroma Chemical products. This strong market position is founded on deep technical expertise and a reputation for supplying products of the highest quality. With further investment and support as an independent business, we see a significant opportunity to accelerate FSI's growth."
DETAILS:
