(JNS) – In the second largest sale, or “exit,” of an Israeli company to date, the American firm International Flavors & Frangrances Inc. (IFF) is acquiring Israeli flavor and ingredient producer Frutarom in a deal worth approximately $7.1 billion.
Only one deal in Israel’s history surpasses the Frutarom exit—the sale of Israel’s Mobileye, makers of vision-based advanced driver-assistance systems, for $15.3 billion in 2017.
Frutarom is based in the coastal city of Haifa, and develops and manufactures primarily natural food, flavor, fragrance, pharmaceutical and cosmetic ingredients. It currently employs 2,700 employees around the world and sells more than 70,000 products to 30,000-plus clients in more than 150 countries.
The company anticipates topping $1.6 billion in sales in 2018, with that number expected to increase to $2.25 billion by 2020.
“We have long admired Frutarom, and have a great deal of respect for its team and all of its dedicated and talented employees around the globe,” said IFF Chairman and CEO Andreas Fibig. “We look forward to welcoming Frutarom to the IFF family.”
Fruitarom shareholders will each receive cash and shares of IFF common stock valued at $106.25 per share. IFF said it intends to maintain an operating base in Israel, but the headquarters will remain in New York.
“Today marks the culmination of a decades-long vision to become a global leader in taste and health,” said Ori Yehudai, president and CEO of Frutarom. “Frutarom and IFF are committed to maintaining a presence in Israel, and I look forward to working with Andreas and the team to ensure a seamless integration of these two terrific companies.”