International Flavors & Fragrances Inc. (NYSE:IFF), a leading global creator of flavors and fragrances for consumer products, announced that it has entered into an agreement to acquire Henry H. Ottens Manufacturing Co., Inc..
Founded more than 130 years ago, Ottens Flavors is a privately-held company headquartered in Philadelphia, PA. Ottens Flavors is well-known for its diverse flavors technologies and outstanding customer service. Ottens Flavors’ customer base includes a strong portfolio of key US-based accounts, which complements IFF’s portfolio well.
“This acquisition is an exciting one as it’s the first step in our redefined strategy to win where we compete,” said IFF Chairman and CEO Andreas Fibig. “IFF and Ottens Flavors share rich histories, world-class capabilities, and a strong commitment to innovation. The Robinson family has built a great company over the past six decades, and we’re looking forward to welcoming the employees of Ottens Flavors into the IFF organization. They will be joining a company that has a long track record of success and one that is well-positioned to deliver sustainable profitable growth in the future.”
Matthias Haeni, Group President, Flavors added, “Ottens Flavors has well-established high-quality customer service capabilities that have earned their company a reputation as one of the best flavors organizations in the U.S. Once completed, the deal will strengthen our operations in North America and enhance our ability to meet the needs of our customers through a differentiated service model geared towards enhancing collaboration and building greater customer intimacy. We’re looking forward to welcoming Ottens Flavors’ employees into the IFF family.”
The transaction, which will be funded from existing resources, is expected to add approximately $60 million in revenue on an annualized basis and be slightly accretive to IFF’s earnings per share in 2015, excluding transaction costs. Financial terms of the deal have not been disclosed.
The completion of this transaction is subject to clearance by the relevant regulatory authorities and satisfaction of other customary closing conditions. Until the transaction closes, which is expected to occur sometime in the second quarter of 2015, Ottens Flavors and IFF will operate as separate companies.
Morgan Stanley & Co. is acting as financial advisor to IFF, and Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor.