10/2018100%

Frutarom acquired by International Flavors & Fragrances (IFF)

ISRAEL Food Processing / Ingredients EV $1–10bn

Context

IFF completed the acquisition of Frutarom in October 2018, creating a unified global leader in taste, scent, and nutrition. The combined company trades under the ticker IFF on the NYSE and Euronext Paris, with a later listing on the Tel Aviv Stock Exchange, while Frutarom’s own listing on the Tel Aviv and London exchanges was delisted. The integration creates a platform with expanded capabilities in naturals, savory solutions, natural colors, food‑protection ingredients, and health‑oriented nutrition, broadening the customer base and increasing exposure to fast‑growing private‑label and SME segments. IFF expects the combination to generate accelerated top‑line growth (5–7% annually) and high‑teens EPS growth on a pro‑forma, currency‑neutral basis between 2019 and 2021, supported by approximately USD 145 million in annual cost synergies by the third full year, achieved through procurement optimization, footprint rationalization, and overhead reduction.

Previously, Frutarom had completed the acquisition of Pti in 2013 as part of its consolidation strategy.

Frutarom, which reported an EBITDA margin of [members only] in 2018, is valued in this transaction at an EV/EBITDA multiple of 15x–25x.

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Target

Frutarom is a leading global supplier of flavors and fine ingredients, offering products primarily to the food, beverage, flavor, fragrance, pharmaceutical, nutraceutical, and cosmetic industries. The company operates a diversified portfolio across two main activities: the Flavors segment, which develops and produces flavor compounds and food systems, and the Fine Ingredients segment, which focuses on natural flavor extracts, functional food ingredients, natural pharma/nutraceutical extracts, specialty essential oils, citrus products, and aroma chemicals. Frutarom’s manufacturing footprint spans plants in the US, UK, Switzerland, Germany, Israel, China, South Africa, and Turkey, while its sales and marketing network covers more than 130 countries through branches and local agents in five continents.

Ent. Value

$1–10bn

Equity Value

[members only]

Multiples

EV / Revenue

2x–6x

EV / EBITDA

15x–25x

EV / EBIT

[members only]

Historical Financials (USD)

Year

Rev

EBITDA

EBIT

2018

2017

Other operations with Frutarom

Other operations with Frutarom
Date	Acquirer	Target	Country	Sector
11/2013	FRUTAROM	PTI (PROTEIN TECHNOLOGIES INGREDIENTS GROUP)	RUSSIA	Ingredients

Other operations with International Flavors & Fragrances (IFF)

Other operations with International Flavors & Fragrances (IFF)
Date	Acquirer	Target	Country	Sector
06/2015	INTERNATIONAL FLAVORS & FRAGRANCES (IFF)	LUCAS MEYER COSMETICS	CANADA	Flavors & Fragrances

Similar deals in Food Processing

Similar deals in Food Processing
Date	Acquirer	Target	Country	Sector
11/2018	AMBIENTA	AROMATAGROUP	ITALY	Ingredients
11/2018	FUJI OIL HOLDINGS	BLOMMER CHOCOLATE	UNITED STATES	Food Products
10/2018	MADEMOISELLE DESSERTS	PÂTISSERIE MICHEL KREMER	FRANCE	Bakery / Pastry
10/2018	LAVAZZA	MARS DRINKS	UNITED STATES	Soft Drinks
10/2018	PEPSICO	HEALTH WARRIOR	UNITED STATES	Food Products
10/2018	HERSHEY COMPANY	PIRATE BRANDS	UNITED STATES	Food Products
10/2018	HIGHLAND EUROPE	HUEL	UNITED KINGDOM	Food Products
09/2018	MBO+ / AMUNDI PRIVATE EQUITY	ARCADO	FRANCE	Meat & Cured Meat
09/2018	KEURIG DR PEPPER	CORE NUTRITION	UNITED STATES	Soft Drinks
07/2018	MANAGEMENT & PRIVATE INVESTORS	BETJEMAN & BARTON	FRANCE	Coffee & Tea

REFERENCES

Valuation range: EV $1–10bn

Revenue range: $1–10bn

EBITDA range: $250–500M

EV/Revenue range: 2x - 6x

EV/EBITDA range: 15x - 25x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Frutarom by International Flavors & Fragrances (IFF) are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

FAQ

What transaction does this page cover?

This page covers International Flavors & Fragrances’s acquisition of 100% of Frutarom, an Israeli company specialised in Ingredients, in 2018.

How was the acquisition of Frutarom by International Flavors & Fragrances valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the $1–10bn band, its EV/EBITDA multiple within the 15x - 25x range, and its EV/revenue multiple within the 2x - 6x range. Exact figures are available to members.

What were Frutarom’s revenue and EBITDA at the time of the deal?

At the time of the transaction, Frutarom generated annual revenue estimated in the $1–10bn range and EBITDA in the $250–500M bracket (FY 2018). Detailed financial figures are available to members.

What sources support the information on this transaction?

Transaction data and operational intelligence were compiled from independent financial press reporting by specialized M&A publications.

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