International Flavors & Fragrances Inc. announced that it has entered into a definitive agreement to acquire UK-based Frutarom Industries Ltd. in the context of a cash and equity transaction worth approximately $ 7.1 billion.
IFF based in New York
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of the flavors, fragrances and active ingredients in cosmetics, said the agreement will help create a world-leading supplier of flavor, fragrance and nutrition. Frutarom from Israel
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is a company for flavors, tasty solutions and natural ingredients.
"By combining our extensive R & D expertise with Frutarom, we offer our clients a wider range of solutions and accelerate our growth strategy, believing that this combination will result in faster and more profitable growth, increasing free cash flow and higher profits Generated returns for our shareholders, "said Andreas Fibig, chairman and CEO of IFF, in a press release.
Under the agreement, Frutarom was unanimously approved by both companies
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Shareholders receive $ 71.19 in cash for each share and 0.249 of an IFF common stock. Based on the 10-day volume-weighted average price of IFF shares for the period ending May 4, 2018, this represents a total value of $ 106.25 per share.
Frutarom shareholders will also receive a special dividend of 0.249 per share on IFF dividends per share.
On a pro-forma basis, the combined company would expect approximately $ 5.3 billion in revenue in 2018. The transaction is expected to be neutral against adjusted cash earnings by IFF in the first full year and double-digit increases in adjusted cash Earnings per share in the second full year.
IFF and Frutarom expect cost effects of $ 145 million by the third full year after completion, with approximately 25% achieved in the first full year.