International Flavours & Fragrances Inc. (IFF) has reached a $ 26.2 billion contract with the nutrition division of DuPont Inc. and beat the Irish Kerry Group. This deal will create a new company that includes DuPont’s nutrition business and bidder’s assets. The market value of these two new companies will reach $ 45.4 billion, DuPont shareholders will receive 55.4% of the shares, and IFF shareholders will receive 44.6%.
The deal is the largest IFF in New York’s history, and the company produces flavors and fragrances for personal care, beverages, food, and home products. The structure of the deal is a reverse Morris trust, which reflects DuPont chairman Ed Breen and CEO Marc Doyle’s desire to pass taxes after the nutrient commercial has diversified a preferred way to reward shareholders. IFF has been challenged by milk and cheesemaker Kerry, which has been hoping to expand ingredients in healthy bacterial strains, dietary supplements, cheese and baked goods, and nutritional products that claim to have a role in disease treatment or treatment. People familiar with the matter said at the time that the IFF became a strong contender for winning deals last week. Upon completion of the transaction, DuPont will receive a one-time cash payment of $ 7.3 billion, expected in the first quarter of 2021. IFF CEO Mr. Andreas Fibig will serve as chairman and CEO of the new company, while Breen will become chief independent director starting in June. In 2021, the board of directors will have 13 directors, including seven directors of the IFF. Until 2022, the total number of boards will be reduced to 12 on average. IFF, which is a New York based company, produces household products, food and beverages and personal care product. Last year it bought Israel’s Frutarom Industries Ltd. for $ 7.1 billion.
The deal is subject to approval by IFF shareholders. The two companies said in a statement that IFF had received support from its largest shareholder, Winder Investment Pte Ltd., which holds more than a 15% stake. Both companies have reiterated their financial guidance for 2019.