IFF Acquires Aromor to Strengthen Its Fragrance Ingredients and Fragrance
NEW YORK -- January 16, 2014
International Flavors & Fragrances Inc. (NYSE:IFF), a leading global creator
of flavors and fragrances for consumer products, today announced that it has
completed the acquisition of Aromor Flavors and Fragrances Ltd., a privately
held manufacturer and marketer of complex specialty ingredients that are used
in fragrances and flavors.
While terms of the transaction have not been disclosed, the Aromor operations
would have represented approximately $35 million of incremental sales to IFF’s
results in 2013 on a proforma basis. IFF funded the transaction from existing
resources. Aromor will become part of the IFF Fragrances Ingredients business
and is expected to be accretive to IFF’s earnings per share in 2014.
Chief Executive Officer Doug Tough said “We are pleased to complete this
important strategic acquisition. We expect Aromor, with its strong R&D
capabilities, to provide us with cost-effective, quality materials to use in
our formula creations and external sales.”
“A key component of our overall Ingredients strategy is to provide
cost-advantaged, specialty molecules that enhance our development of consumer
preferred fragrance compounds,” added Nicolas Mirzayantz, Group President
Fragrances. “We believe the use of the Aromor ingredients portfolio and their
technology development process will be value enhancing by improving the
overall profitability and win rate of our fragrance creations. We plan to
continue to support the Aromor facility in Israel and invest in and develop
their R&D and manufacturing capabilities in order to strengthen the
development and production of specialty ingredients.”
“We welcome Aromor’s talented and dedicated team and are excited to bring
their pipeline of specialty ingredients to IFF. The Aromor acquisition is
complementary to our existing ingredients portfolio and is an important step
in increasing our scale and expertise in Ingredients,” said Rob Edelman, SVP
Fragrance Ingredients. “As Aromor is currently one of our suppliers, we have
been working with the Aromor team for many years and are excited to have them
join IFF. We look forward to working with the current Aromor management as
they continue to lead and manage the company’s operations.”
“Aromor is delighted to join the IFF family as it will enable accelerated
growth for our business. Our R&D expertise, combined with IFF, will enable
increased new product development and technology advances,” said Karen Cohen
Khazon, Aromor Chief Executive Officer and President.
Founded in 1982, and based in Israel in Kibbutz Givat Oz with sales offices in
the United States, Aromor is engaged in the development, production and
marketing of Natural, Natural Identical and Synthetic high added value aroma
and flavors ingredients for the perfume, cosmetics and food industries. Aromor
has approximately 90 employees. Aromor has salient competitive advantages and
specializes in the development of captives and sophisticated molecules. For
more information, please visit our website at www.aromor.com.
International Flavors & Fragrances Inc. (NYSE: IFF) is a leading global
creator of flavors and fragrances used in a wide variety of consumer products.
Consumers experience these unique scents and tastes in fine fragrances and
beauty care, detergents and household goods, as well as beverages, sweet goods
and food products. The Company leverages its competitive advantages of
consumer insight, research and development, creative expertise, and customer
intimacy to provide customers with innovative and differentiated product
offerings. A member of the S&P 500 Index, IFF has approximately 5,900
employees working in 32 countries worldwide. For more information, please
visit our website at www.iff.com.
This press release contains forward-looking statements under the Federal
Private Securities Litigation Reform Act of 1995, which are often identified
by words like “believe,” “assume,” “expect,” “should” or similar expressions.
In particular, among others, statements about expectations regarding the
effects of the Aromor Flavors and Fragrances Ltd. acquisition, including
growth, cost-saving opportunities, increased scale and the impact on our
innovation strategy are forward-looking statements. These forward-looking
statements are qualified in their entirety by cautionary statements and risk
factor disclosures contained in IFF’s filings with the U.S. Securities and
Exchange Commission, including its Annual Report on Form 10-K filed with the
Commission on February 26, 2013. We wish to caution readers that certain
important factors could cause actual results to differ materially from those
expressed in any forward-looking statements made in this press release,
including, but not limited to our ability to achieve expected synergies and
successfully complete the integration of Aromor and the level of expenses and
other charges related to the acquisition. We believe these forward-looking
statements are reasonable; however, undue reliance should not be placed on any
forward-looking statements, which are based on current expectations. All
forward-looking statements speak only as of the date hereof. We undertake no
obligation to update or revise forward-looking statements that may be made to
reflect events or circumstances that arise after the date made or to reflect
the occurrence of unanticipated events, other than as required by law.
International Flavors & Fragrances Inc.
Shelley Young, 212-708-7271
Denise Gillen, 212-515-7308
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