International Flavors & Fragrances to sell Savory Solutions to PAI Partners

US-based International Flavors & Fragrances (IFF) has agreed to sell Savory Solutions Group to French private equity firm PAI Partners for an enterprise value of approximately $900 million.

International Flavors & Fragrances will use cash proceeds net of taxes and expenses to reduce outstanding debt.

The sale of Savory Solutions Group is anticipated to help International Flavors & Fragrances focus on its highest-return businesses and improve our capital structure.

Post-closing, PAI Partners is expected to help Savory Solutions business to further expand through international expansion in Europe and North America, both organically and through acquisitions.

Savory Solutions provides ingredients and blends under the Wiberg and Piasa brands and plant-based solutions for the vegan and vegetarian markets.

Expected to improve texture and taste, as well as increase shelf life of products, the solutions are used by food manufacturers, butchers and food service players.

Frank Clyburn — International Flavors & Fragrances CEO said: “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.”

The Group with around 1,800 employees, operates 17 production units and nine innovation centres out of Austria, Germany, Italy, Ireland, Poland, Canada, Mexico and Thailand.

With more than 11,000 customers across Europe, North America and Asia, Savory Solutions had generated revenue of around $475 million in revenue over the last one year.

J.P. Morgan Securities and Lazard served as financial advisors to International Flavors & Fragrances while Cleary Gottlieb Steen & Hamilton acted as legal counsel.

The sale is expected close in the second quarter of 2023, subject to regulatory clearances and customary closing conditions.