THE WHAT? IFF has announced that it has agreed to sell its Flavor Specialty Ingredients business to Exponent for US$220 million. FSI reports through IFF’s scent division and is a leading manufacturer of synthetic and natural base aroma chemicals.
THE DETAILS Cash proceeds from the transaction will be used to reduce outstanding debt. The transaction is expected to close by the end of the third quarter of the current year, subject to customary closing conditions.
THE WHY? IFF CEO Frank Clyburn, commented, “Aligned with our strategy, we’re continuously evaluating our portfolio to identify opportunities to strengthen our financial profile. The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns. We appreciate the contributions of our FSI colleagues, who have shared our commitment to quality and customer service. We will work closely with Exponent to have a successful transition and look forward to FSI’s bright future.”