NEW YORK - International Flavors & Fragrances Inc. (NYSE: NYSE:IFF) has reached a definitive agreement to divest its Pharma Solutions business to Roquette, a leader in plant-based ingredients based in France, for an enterprise value of up to $2.85 billion. The transaction, which is expected to close in the first half of 2025, is part of IFF's strategy to optimize its portfolio and reduce debt.
The sale includes IFF's Pharma Solutions division, known for developing and manufacturing pharmaceutical excipients. It also encompasses the Global Specialty Solutions business, which supports industrial and methyl cellulosic food applications. The Pharma Solutions business, which generated approximately $1 billion in revenue in 2023, employs around 1,100 people across 10 research and development and production sites worldwide.
IFF's CEO, Erik Fyrwald, expressed confidence in the growth potential for Pharma Solutions under Roquette's ownership, citing the transaction as a significant move towards IFF's goal of reducing debt leverage to 3.0x or below. Fyrwald also noted the focus on driving long-term profitable growth and maximizing shareholder value.
Roquette's CEO, Pierre Courduroux, welcomed the partnership with IFF's Pharma Solutions team, highlighting the opportunity to become a global specialist in drug delivery and oral dosage solutions. He emphasized the combined expertise in excipients and the commitment to meeting the evolving needs of pharmaceutical manufacturers and patients seeking better treatments.
The agreement stipulates that the transaction's completion is subject to customary closing conditions, including regulatory approvals, and fulfilling applicable information and/or consultation requirements.
J.P. Morgan Securities LLC served as IFF's exclusive financial advisor, with Skadden, Arps, Slate, Meagher & Flom LLP providing legal counsel. The board received advice from Evercore.
This strategic divestiture is based on a press release statement.
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