International Flavors & Fragrances Inc. is acquiring Fragrance Resources in order to grow in specialty fine fragrances.
“Since 1987, the Fragrance Resources team has been a key player in faster-growing specialty fine fragrances — an important growth category,” said Nicolas Mirzayantz, group president for fragrances. “The addition of this outstanding company into the IFF family will help us strengthen our position in strategic areas and further penetrate the critical and accelerating regional customer base that we see as the engine of growth.”
The deal is expected to add about $75 million in revenue and be modestly accretive to IFF’s earnings per share for 2107, excluding transaction costs, the company said. Terms of the transaction were not disclosed.
Fragrance Resources, founded in 1987, has facilities in Germany, North America, France and China. The business is led by Dirk Lauven, chief executive officer Europe, Christoph Gerberding, ceo America and Jeremy Cheng, ceo Asia-Pacific.
The acquisition comes after IFF chairman and ceo Andreas Fibig said in August that the company’s M&A pipeline was “well-filled.” The Fragrance Resources deal fits into the company’s Vision 2020 strategy, which includes investing in innovation, forming partnerships with customers and broadening the portfolio through acquisitions and collaborations. The company specializes in fine fragrances, beauty, detergents, household goods, foods and beverages.
“IFF’s Vision 2020 business strategy is well-served with this highly complementary bolt-on acquisitions, helping us to win where we compete in key fragrance markets and categories as we look to accelerate growth,” Fibig said. “With our shared values and a passion for our people, products and customers, Fragrance Resources will be a strong addition to IFF.”
IFF previously acquired Lucas Meyer Cosmetics, which develops ingredients for the cosmetics and personal care industry. The business also invested in Canadian research and development laboratory Bio ForeXtra in July, aiming to add further access to cosmetic ingredients.
Also as part of the Vision 2020 strategy, IFF partnered with Unilever to support vetiver farmers in Haiti under a program called Vetiver Today. The plan is to improve food security, increase yields, diversify income, support women’s empowerment and conserve the environment.