IFF Announces the Sale of Its Savory Solutions Group to PAI Partners

Rhea-AI Summary

IFF (NYSE: IFF) announced the sale of its Savory Solutions Group to PAI Partners for approximately $900 million. The deal, expected to close in Q2 2023, aims to reduce IFF's outstanding debt. The Savory Solutions Group, which generated $475 million in revenue over the past year, serves more than 11,000 customers globally. CEO Frank Clyburn highlighted the transaction as a step to enhance shareholder value and focus on higher-return businesses. The sale values the business at roughly 14 times the last 12-month EBITDA.

Positive

• Agreement to sell Savory Solutions Group for approximately $900 million.
• Proceeds will be used to reduce outstanding debt, improving capital structure.
• Savory Solutions generated $475 million in revenue, serving over 11,000 customers.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- IFF (NYSE: IFF) today announced it has entered into an agreement to sell its Savory Solutions Group to PAI Partners, a leading global private equity firm with a strong focus on the food and consumer industry. The transaction values the business at approximately $900 million and cash proceeds net of taxes and expenses will be primarily used to reduce outstanding debt.

“A key aspect of our strategy is to continuously evaluate our portfolio to identify opportunities to maximize shareholder value,” said IFF CEO Frank Clyburn. "The sale of IFF’s Savory Solutions Group is an important milestone as it allows us to focus on our highest-return businesses, improve our capital structure and enhance our go-forward growth and return profile. We appreciate the contributions of our Savory Solutions colleagues who have, for years, demonstrated their commitment to innovation, service and quality. We will work closely with PAI Partners to have a successful transition and look forward to Savory Solutions’ future under its ownership.”

IFF’s Savory Solutions Group focuses primarily on ingredients for prepared foods and foodservice, including products for butchers, and plant-based solutions for the vegan and vegetarian markets. It includes several business units operating out of Austria, Germany, Italy, Ireland, Poland, Canada, Mexico and Thailand. With approximately 1,800 employees, IFF’s Savory Solutions served more than 11,000 customers, and generated approximately $475 million in revenue over the last 12 months. The transaction values the business at approximately 14x the last 12-month EBITDA.

IFF and PAI Partners expect to close the transaction in the second quarter of 2023, subject to customary closing conditions, including satisfaction of applicable consultation requirements, and regulatory clearances.

J.P. Morgan Securities LLC and Lazard acted as financial advisors to IFF and Cleary Gottlieb Steen & Hamilton LLP provided legal support.

Cautionary Statement under the Private Securities Litigation Reform Act of 1995

This press release contains “forward-looking statement” within the meaning of the federal securities laws, including Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the proposed transaction and the expected timetable for completing the proposed transaction. The forward-looking statements included in this release are made only as of the date hereof, and we undertake no obligation to update the forward-looking statement to reflect subsequent events or circumstances.

Welcome to IFF

At IFF (NYSE: IFF), an industry leader in food, beverage, scent, health and biosciences, science and creativity meet to create essential solutions for a better world – from global icons to unexpected innovations and experiences. With the beauty of art and the precision of science, we are an international collective of thinkers who partners with customers to bring scents, tastes, experiences, ingredients and solutions for products the world craves. Together, we will do more good for people and planet. Learn more at iff.com, Twitter, Facebook, Instagram, and LinkedIn.

© 2022 by International Flavors & Fragrances Inc. IFF is a Registered Trademark. All Rights Reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221219005840/en/

Media Relations:

Paula Heinkel

332.877.5339

Media.request@iff.com

Investor Relations:

Michael Bender

212.708.7263

Investor.Relations@iff.com

Source: IFF

FAQ

What is the value of the IFF Savory Solutions Group sale?

The Savory Solutions Group sale is valued at approximately $900 million.

What will IFF do with the proceeds from the sale?

IFF will primarily use the proceeds to reduce outstanding debt.

When is the expected closing date for the transaction?

The transaction is expected to close in the second quarter of 2023.

How much revenue did the Savory Solutions Group generate?

The Savory Solutions Group generated approximately $475 million in revenue over the last 12 months.

Who is acquiring IFF's Savory Solutions Group?

PAI Partners, a leading global private equity firm, is acquiring IFF's Savory Solutions Group.