(Please read in §1 that the $2.85 billion is a company value)
International Flavors & Fragrances (IFF) IFF.N announced on Tuesday the sale of its pharmaceutical solutions business to the Roquette group, a French manufacturer of plant-based ingredients, based on an enterprise value of 2.85 billion dollars (2.62 billion euros), in order to concentrate on more profitable activities.
The move comes at a time when IFF is seeing slowing demand for its food ingredients and solutions business, particularly from end-users such as consumer goods companies, amid rising production rates. interest and inflationary pressures.
New York-based IFF decided last year to sell some of its “non-core” business divisions in order to improve its organizational structure and reduce its debt.
On the New York Stock Exchange, IFF shares gained 0.3% in early trading.
Roquette, a family business founded in 1933, has an annual turnover of around 5 billion euros. The group bought Japanese capsule manufacturer Qualicaps from Japanese company Mitsubishi Chemical 4188.T last year, with the aim of expanding its global presence in the pharmaceutical sector.
(Reporting Juveria Tabassum, Granth Vanaik and Sybille de La Hamaide; French version Alban Kacher, edited by Blandine Hénault)