International Flavors & Fragrances Sheds Pharma Solutions Unit For Up To $2.85B, Refocusing On Core Growth
Portfolio Pulse from Shivani Kumaresan
International Flavors & Fragrances Inc (NYSE:IFF) is selling its Pharma Solutions unit to Roquette for up to $2.85 billion, aiming to reduce debt leverage and focus on core growth areas. The deal, expected to close in the first half of 2025, values the unit at an EBITDA multiple of approximately 13x. IFF's Pharma Solutions, with $1 billion revenue in 2023 and 1,100 employees, supports pharmaceutical and food applications. IFF's move is part of a broader strategy to optimize its portfolio and reduce debt.
March 19, 2024 | 11:38 am
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IFF is selling its Pharma Solutions unit to Roquette for up to $2.85 billion, aiming to focus on core growth areas and reduce debt leverage.
The sale of the Pharma Solutions unit is a significant move for IFF, indicating a strategic pivot towards core growth areas and a commitment to reducing debt. This transaction is expected to positively impact IFF's financial health by providing a substantial cash influx and potentially improving its debt profile. The positive premarket price action suggests that the market views this move favorably in the short term.
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