International Flavors and Fragrances Inc. is combining with the nutrition division of DuPont in a merger that will create one of the largest ingredient suppliers in the world.
The combination of IFF and the Nutrition & Biosciences division of DuPont will result in a company valued at $45.4 billion. The combined company will have leading products across a number of ingredient categories, including scent, nutrition, enzymes, cultures, soy proteins and probiotics. It is expected to have annual revenue of about $11 billion.
The deal was unanimously approved by both companies’ boards but still must be approved by IFF’s shareholders. It values DuPont’s nutrition business at $26.2 billion. Upon completion of the transaction, DuPont will receive a one-time payment of $7.3 billion.
DuPont shareholders will own 55.4% of the shares of the new company, with existing IFF shareholders owning the remaining 44.6%. The combined company will be led by IFF CEO Andreas Fibig. The board initially will consist of seven current directors of IFF and six appointed by DuPont.
Ever since the breakup of DowDuPont into three businesses earlier this year, DuPont had been shopping its nutrition business, with Kerry Group expressing interest. For its part, IFF has been on an acquisition binge, buying Frutarom last year.
