FRUTAROM acquired by INTERNATIONAL FLAVORS & FRAGRANCES (IFF)
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 in 2018, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the AgriFood sector (10.7x).
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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
Equity Value
Multiples
EV / Revenue
EV / EBITDA
EV / EBIT
Historical Financials (USD)
Other operations with FRUTAROM
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 11/2013 | FRUTAROM | PTI (PROTEIN TECHNOLOGIES INGREDIENTS GROUP) | RUSSIA | Ingredients |
REFERENCES
Valuation range: EV 3b - 100b USD
Revenue range: 1b - 3b USD
EBITDA range: 250M - 500M USD
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