In May, International Flavors & Fragrances announced the company was acquiring Frutarom to grow its naturals business, as Cosmetics Design reported.
Explaining further, Andreas Fibig, chairman and CEO of IFF, told the press, “Futarom has an extremely attractive product portfolio, including broad expertise in naturals and diverse adjacencies with capabilities beyond our core taste and scent businesses. It also has significant expsusre to complementary and fast-growing small- and mid-sized customers. By combining our deep R&D expertise with Frutaroms’ we are offering our customers a broad range of solutions and accelerating our growth strategy.”
A corporation’s progress
Now, just months later the two companies have become one.
“It was a truly exciting day for IFF as we were able to celebrate becoming a global leader in taste, scent and nutrition by ringing the NYSE Opening Bell,” remarked Rich O’Leary, executive vice president and CFO at IFF, in a media release issued Monday. Looking back, O’Leary notes “When we were first listed on the NYSE in 1964, our revenue was $52 million, and now, as we approach our 55th year being listed, our pro-forma 2018 revenue will be $5.3 billion.”
Looking forward he believes that “IFF is now even better positioned to deliver sustainable, profitable growth through its enhanced platform and broader exposure to fast-growing end markets. We are excited to move forward as one company to deliver significant value creation for our customers, employees, partners and shareholders.”
A bigger business
Going forward, IFF is better equipped to supply private label beauty and fragrance makers as well as small and mid-sized manufacturers and brands. The company also has the potential to get in on the wellness and supplements market with “health ingredients.”
The newly completed deal, according to the media release:
- Creates a differentiated portfolio with an increased focus on naturals and health and wellness as well as more comprehensive solutions
- Provides opportunities to expand into attractive and fast-growing categories, such as savory solutions, natural colors, natural food protection and health ingredients
- Broadens complementary and growing customer base, including enhanced exposure to the fast-growing small- and mid-sized customers, such as private label
- Establishes enhanced platform to deliver sustainable, profitable growth
- Provides strong value creation opportunities to maximize shareholder value – including cross-selling benefits as well as cost synergies
Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.