Symrise yesterday announced that it has agreed to acquire American Dehydrated Foods/International Dehydrated Foods, a maker of natural ingredients for pet food, for $900 million. ADF/IDF, which has $220 million/year in sales, expands Syrmise’s presence in the pet food business and the food nutrition market, especially in the United States. The purchase will be funded with debt and equity.
ADF/IDF was founded in 1978 by owner William Darr, who is selling the company to Symrise. The company has 470 employees and 11 manufacturing sites throughout North America. It produces natural and clean label products for pet food, including taste and nutrition products and functional ingredients.
The acquisition is expected to be accretive immediately upon closing. The purchase price represents a multiple of about 18 times (x) ADF/IDF’s annual EBITDA, according to Gunther Zechmann, an analyst with Bernstein (London). “The acquired business has grown 5–6% historically, and could grow 6–7% with sales synergies, at accretive margins,” Zechmann says. Regulatory approval is likely, and the deal should close in mid-2019, he adds.
Symrise says it will combine ADF/IDF with its Diana portfolio of pet food ingredient products. “The complementary offering will further diversify our Diana portfolio in pet food and nutrition,” says Symrise CEO Heinz-Jurgen Bertram. The acquisition also broadens Symrise’s presence in the United States, “a strategically important growth market for use,” Bertram says.
The product slates of Symrise and ADF/IDF also create possibilities for cross selling, as well as joint R&D, according to Symrise.
By Vincent Valk
Source: Chemical Week
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