IFF to acquire DuPont’s Nutrition & Biosciences in $26.2bn deal

International Flavors & Fragrances (IFF) has agreed to acquire DuPont‘s Nutrition & Biosciences (N&B) business in a $26.2 billion deal to create a combined company valued at $45.4 billion.

Upon closing of the deal, DuPont’s shareholders will hold a 55.4% stake in the new company, while existing IFF shareholders will own the remaining stake of 44.6%. As per the terms of the deal, DuPont will get a one-time of $7.3 billion special cash payment from IFF.

Ed Breen – Executive Chairman of DuPont said: “DuPont and IFF share long and successful histories of customer-driven innovation and cultures of excellence, which is why I am confident that N&B will be well-positioned for its next phase of growth. I am pleased to join the Board of the combined organization and remain involved in unlocking the potential of this new company.

“We conducted a very thorough process leading us to the selection of IFF as the preferred strategic partner for N&B. I am excited about the future of the new company and all the opportunities it has for long-term value creation.”

IFF to acquire DuPont’s Nutrition & Biosciences for $26.2bn. Photo courtesy of Americasroof/Wikimedia Commons.

The merger of IFF and N&B is expected to result in a major global company in high-value ingredients and solutions for the food and beverage, health and wellness, and home and personal care markets. The estimated 2019 pro forma revenue of the combined company will be in excess of $11 billion, said IFF.

Furthermore, the complementary portfolios are anticipated to help the combined company gain top positions across key taste, texture, scent, soy proteins and probiotics, enzymes, nutrition, and cultures segments.

Andreas Fibig – IFF Chairman and CEO said: “The combination of IFF and N&B is a pivotal moment in our journey to lead our industry as an invaluable innovation and creative partner for our customers. Together, we will create a leading ingredients and solutions provider with a broader set of capabilities to meet our customers’ evolving needs.

“With highly complementary portfolios, we will have global scale and leading positions in key growth categories to capitalize on positive market trends, drive strong profitable growth for our shareholders and create opportunities for our employees. ”

Subject to approval from IFF’s shareholders, regulatory approvals, and other customary closing conditions, the deal is expected to be closed by the end of Q1 2021.