DuPont (DD) Is Merging Its Food And Nutrition Business With International Flavors & Fragrances
DuPont (DD) is creating a new $45.4 billion consumer goods big by merging its food and nutrition business with International Flavors & Fragrances.
The deal announced Sunday values the DuPont unit at $26.2 billion. DuPont shareholders will retain a majority stake within the new entity, which may have a mixed annual revenue of more than $11 billion.
New York-based IFF (IFF) develops flavors and fragrances for consumer brands. The corporate has 33,000 clients and hundreds of producing and research facilities all over the world.
DuPont, which counts Kevlar and Styrofoam as purchasers, has been shaking up its business in recent times. The previous giant DowDuPont is now three separate companies that concentrate on materials sciences (now known as Dow Inc. (DOW)), agriculture (now dubbed Corteva (CTVA)), and specialty goods (DuPont).
Apart from its nutrition unit, DuPont additionally focuses on products associated with electronics, transportation, and construction.
IFF and DuPont want to blitz the global ingredients market whereas reducing down on costs significantly. The companies stated in a joint statement Sunday that they’re projecting savings of about $300 million within 3 years of closing the deal and expect the new firm to attain a leading place in segments including soy proteins, enzymes, and probiotics.
The companies want to close the deal, which remains to be subject to approval by regulators and IFF shareholders by early 2021. IFF CEO Andreas Fibig will continue to serve as chairman and chief executive.
IFF reportedly beat out Irish food giant Kerry Group for the deal. As of last week, the European firm had additionally been interested in snapping up DuPont’s nutrition division.