International Flavors and Fragrances Inc. has closed the deal for Frutarom, and posted a jump in net sales for the third quarter.
“We believe that our combination with Frutarom, the largest transaction of its kind in our industry, is fundamentally going to expand our customer and employee base and product offerings. We will have greater exposure to fast-growing customers, broader access to attractive adjacencies and a differentiated portfolio with an increased focus on naturals and health and wellness as well as more comprehensive solutions. We believe this will translate into accelerated financial performance as a combined company, with robust top- and bottom-line growth, leading to strong returns for our shareholders,” said IFF chairman and chief executive officer Andreas Fibig in a statement.
For the third quarter, IFF reported net sales of $908 million, a 4 percent gain from $873 million in the prior-year period. Net income was $95.7 million, down from $110.3 million year over year.
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Flavors sales were up 6 percent, while fragrance sales were up 2 percent, the company said.
In fragrance, fine fragrance sales dipped 3 percent, with new win performance offset by “volume softness” the company said. Consumer fragrances were up 2 percent, driven by hair, home and fabric care. Ingredients were up 6 percent, driven by cosmetic active ingredients.
With the completion of the Frutarom deal, IFF is expected to have net sales of between $3.95 billion and $4.05 billion, with adjusted earnings per share of $6.25 to $6.45.