An employee in a laboratory
(Please read in §1 that the $2.85 billion is a company value)
International Flavors & Fragrances (IFF) 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 ( 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 last year from Japanese company Mitsubishi Chemical, with the aim of expanding its global presence in the pharmaceutical sector.
(Correction: read carefully in the first paragraph that the $2.85 billion is an enterprise value)
(Reporting Juveria Tabassum, Granth Vanaik and Sybille de La Hamaide; French version Alban Kacher, edited by Blandine Hénault)