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DuPont’s Nutrition & Biosciences Unit To Merge With IFF

DuPont’s Nutrition & Biosciences Unit To Merge With IFF
The IFF and DuPont’s Nutrition & Biosciences business will be merged in a Reverse Morris Trust transaction, the two companies have announced. On an enterprise value basis, the value of the merged entity is anticipated to be at $45.4 billion which effectively values the N&B business for DuPont at $26.2 billion.
 The shareholders of DuPont will own 55.4 per cent of the shares of the new merged entity while the rest would be owned by the existing IFF shareholders, according to the terms of the agreement. The merger has also been approved by the both Boards of Directors of both the companies. A one-time $7.3 billion special cash payment, subject to certain adjustments will be given to DuPont after the completion of the deal.
In the high-value ingredients and solutions segment of the global Food & Beverage, Home & Personal Care and Health & Wellness industry, a new globally relevant player will be created by the merger of IFF and DuPont’s N&B business. It is estimated that more than $11 billion in revenues and an EBITDA of $2.6 billion, excluding synergies, will be possible for 2019 of the two companies combined.
A global leadership position across key Taste, Texture, Scent, Nutrition, Enzymes, Cultures, Soy Proteins and Probiotics categories will be gained by the two merged companies because of the complementary portfolios of the two merging companies. Post the merger, the development of innovative solutions ro address customer demands and the increasing consumer preferences for natural, healthier, and “better for you” products will be achieved through the new entity’s global reach and enhanced set of capabilities.
“The combination of IFF and N&B is a pivotal moment in our journey to lead our industry as an invaluable innovation and creative partner for our customers. Together, we will create a leading ingredients and solutions provider with a broader set of capabilities to meet our customers’ evolving needs,” said IFF Chairman and CEO, Andreas Fibig.
“With highly complementary portfolios, we will have global scale and leading positions in key growth categories to capitalize on positive market trends, drive strong profitable growth for our shareholders and create opportunities for our employees. I have been impressed by N&B’s management team, which shares our culture and values, and we look forward to welcoming them to the IFF family,” Fibig added.
“DuPont and IFF share long and successful histories of customer-driven innovation and cultures of excellence, which is why I am confident that N&B will be well-positioned for its next phase of growth. I am pleased to join the Board of the combined organization and remain involved in unlocking the potential of this new company,” said Ed Breen, Executive Chairman of DuPont.
“We conducted a very thorough process leading us to the selection of IFF as the preferred strategic partner for N&B. I am excited about the future of the new company and all the opportunities it has for long-term value creation,” Breen added.

Christopher J. Mitchell

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