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NEW YORK - International Flavors & Fragrances Inc. (NYSE: IFF) has completed the sale of its nitrocellulose division to Czechoslovak Group (CSG), a move aimed at reducing debt and sharpening the company’s focus on its core areas. The transaction, which includes the transfer of Walsrode Industrial Park in Lower Saxony, Germany, was finalized earlier this week.
The sold business, previously a part of IFF’s Pharma Solutions unit, specializes in the production of nitrocellulose for industrial applications, catering primarily to the coatings and printing inks sectors.
IFF’s CEO, Erik Fyrwald, commented on the divestiture, expressing gratitude to the nitrocellulose team for their commitment and conveying best wishes for their future endeavors under the new ownership of CSG.
This strategic move is part of IFF’s broader efforts to deleverage its business, as the company seeks to enhance its position in the flavors, fragrances, food ingredients, health, and biosciences sectors. These areas are where IFF claims global leadership, focusing on delivering sustainable innovations that contribute to wellness and enrich consumer experiences.
The financial terms of the deal have not been disclosed. The information regarding the divestiture is based on a press release statement from IFF.
In other recent news, International Flavors & Fragrances (IFF) reported a mixed performance for the first quarter of 2025, surpassing earnings per share (EPS) expectations with $1.20 against a forecast of $1.13, but missing revenue projections with $2.8 billion compared to the anticipated $2.83 billion. Despite the revenue shortfall, the company achieved a 9% increase in adjusted operating EBITDA on a comparable currency-neutral basis, marking its fourth consecutive quarter of margin expansion. Barclays upgraded IFF’s stock rating from Equalweight to Overweight, raising the price target to $84, citing a positive outlook on the company’s business approach and reduced financial risk. The firm also noted IFF’s strategic completion of its Pharma divestiture and reduction of its leverage ratio, which align with the company’s goals for a more secure financial profile.
Oppenheimer maintained its Outperform rating for IFF with a price target of $89, emphasizing the company’s recovery over the past year and strategic initiatives like debt reduction and innovation efforts. The analysts believe these actions will attract a broader investor base and support a bullish outlook. IFF’s financial guidance for 2025 has been deemed more reliable, with revenue and earnings projections seen as comfortably attainable, according to Barclays. The company’s ongoing efforts to innovate and regain market share have been highlighted as key factors in its strategic direction.
IFF’s recent developments also include its successful divestiture of Pharma Solutions, enhancing its focus on core segments and supporting its deleveraging targets. The company maintained its full-year sales guidance of $10.6-$10.9 billion, anticipating 1-4% currency-neutral growth. Despite macroeconomic challenges and potential tariff impacts, IFF continues to focus on margin improvement, particularly in its Food Ingredients segment, targeting above 15% by 2026.
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