IFF has announced plans to sell its Flavor Specialty Ingredients (FSI) business to UK-based private equity firm, Exponent, for $220 million in cash proceeds.
FSI manufactures synthetic and natural base aroma chemicals used in the flavour market and reports through IFF’s scent division. The business, which has a range of more than 1,000 aroma chemicals and natural extracts, has four dedicated manufacturing and distribution facilities in the UK, US and China, as well as additional distribution centres in Mexico, Brazil and Hong Kong.
IFF CEO, Frank Clyburn, said: “The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns. We appreciate the contributions of our FSI colleagues, who have shared our commitment to quality and customer service. We will work closely with Exponent to have a successful transition and look forward to FSI’s bright future.”
Mark Taylor, partner at Exponent, said: “We are delighted that we have agreed to acquire the FSI division from IFF. FSI is a global leader in the base aromas market, with a strong customer base and a differentiated portfolio of Natural and Aroma Chemical products. This strong market position is founded on deep technical expertise and a reputation for supplying products of the highest quality. With further investment and support as an independent business, we see a significant opportunity to accelerate FSI’s growth.”
In December 2022, IFF announced the sale of its Savory Solutions Group to private equity firm PAI Partners for approximately $900 million.
IFF and Exponent expect the transaction to close by the end of Q3 2023, subject to closing conditions. Cash proceeds from the transaction will be used to reduce outstanding debt.
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