IFF to Merge with DuPont’s Nutrition & Biosciences Business

International Flavors & Fragrances Inc has announced it will merge with DuPont Inc’s USD26.2bn nutrition and biosciences unit in a deal that will create a new consumer giant valued at more than USD45b.

The combination of IFF and N&B creates a global leader in high-value ingredients and solutions for food & beverage, home & personal care and health & wellness markets, with an estimated 2019 pro forma revenue of more than USD11bn. The complementary portfolios will give the company leadership positions across key taste, texture, scent, nutrition, enzymes, cultures, soy proteins, and probiotics categories.

The new company will be able to create innovative solutions to respond to customer demands and increasing consumer preferences for natural, healthier, and “better for you” products, the representatives explained.

Under the terms of the agreement, which has been unanimously approved by both boards of directors, DuPont shareholders will own 55.4% of the shares of the new company and existing IFF shareholders will own 44.6%. Upon completion of the transaction, DuPont will receive a one-time USD7.3bn special cash payment, subject to certain adjustments.

“The combination of IFF and N&B is a pivotal moment in our journey to lead our industry as an invaluable innovation and creative partner for our customers. Together, we will create a leading ingredients and solutions provider with a broader set of capabilities to meet our customers’ evolving needs. With highly complementary portfolios, we will have global scale and leading positions in key growth categories to capitalize on positive market trends, drive strong profitable growth for our shareholders and create opportunities for our employees,” said IFF Chairman and CEO, Andreas Fibig.

“DuPont and IFF share long and successful histories of customer-driven innovation and cultures of excellence, which is why I am confident that N&B will be well-positioned for its next phase of growth. I am pleased to join the board of the combined organization and remain involved in unlocking the potential of this new company. We conducted a very thorough process leading us to the selection of IFF as the preferred strategic partner for N&B. I am excited about the future of the new company and all the opportunities it has for long-term value creation,” said Ed Breen, executive chairman of DuPont.