International Flavors & Fragrances said Thursday it has acquired one of its suppliers, Aromor Flavors and Fragrances Ltd., a privately held Israeli manufacturer and marketer of complex specialty ingredients that are used in fragrances and flavors.
This story first appeared in the January 17, 2014 issue of WWD. Subscribe Today.
While terms of the transaction were not disclosed, the Aromor operations would have represented about $35 million of incremental sales to IFF’s results in 2013 on a pro-forma basis. IFF funded the transaction from existing resources. Aromor will become part of the IFF Fragrances Ingredients business and is expected to be accretive to IFF’s earnings per share in 2014.
“The acquisition strengthens our leadership position — we have the broadest portfolio of ingredients in the industry and this broadens and strengthens our portfolio,” said Nicolas Mirzayantz, group president, fragrances for IFF. “We’re adding additional capabilities for perfumers to create. The catalogue of their ingredients is very strong so our perfumers will be able to use more of their products and also [research and development] capabilities are unique. They have a very strong team of scientists, so it’s really strengthening our capabilities to create fragrances. Our perfumers are being given more resources and capabilities. This acquisition will accelerate and strengthen our win rate for our fragrance creations, and we are very excited about the pipeline of new molecules that this company is bringing to us, which enhance our development of consumer-preferred fragrance compounds.”
Mirzayantz added that IFF plans to continue to support the Aromor facility in Israel.
“Aromor is delighted to join the IFF family,” said Karen Cohen Khazon, Aromor’s chief executive officer and president. “Our [research and development] expertise, combined with IFF, will enable increased new-product development and technology advances.”