DuPont to Merge Ingredients Business with IFF
December 15 2019 - 7:19PM
Dow Jones News
By Austen Hufford
DuPont de Nemours Inc. reached a deal to combine its nutrition
business with International Flavors & Fragrances Inc., creating
a company that would be a top supplier of ingredients to U.S. food
makers.
The companies said Sunday the entity would have revenue of $11
billion and be a major supplier of products including soy proteins,
probiotics, enzymes and ingredients for creating scents and tastes
for consumer products. The new company will continue to be called
IFF and based in New York.
The combination would put more IFF products in fast-growing
segments of the food market such as plant-based meat alternatives.
DuPont's soy protein and binders and IFF products including
coloring and flavors all are used in those foods, which have been
rapidly adding sales and exposure. The company also will make
products including capsules for the pharmaceutical industry and
scents for household cleaning products.
IFF Chief Executive Andreas Fibig would continue to lead the
combined company and serve as chairman.
DuPont became a stand-alone company this year following the
breakup of DowDuPont Inc. Dow and DuPont agreed to merge in 2015
and have since completed a plan, laid out then, to split into three
companies.
DowDuPont's materials-science business is now Dow Inc. and its
agriculture business is Corteva Inc.
DuPont is the specialty-sciences portion. Dupont's Nutrition
& Biosciences unit made up 28% of the company's revenue in the
first nine months of the year.
The deal values DuPont's nutrition division at around $26
billion. As of Friday, DuPont as a whole had a market
capitalization of $48 billion and IFF had one of $14.31
billion.
DuPont shareholders will own 55.4% of the combined company,
while IFF's shareholders will own 44.6%. DuPont also will get a
$7.3 billion cash payment.
The company's board will include seven members of IFF's current
board, DuPont Executive Chairman Ed Breen and five other members
chosen by DuPont.
"With highly complementary portfolios, we will have global scale
and leading positions in key growth categories," Mr. Fibig
said.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
December 15, 2019 19:04 ET (00:04 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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