International Flavors & Fragrances Inc. (IFF), one of the leading American corporations in the field of flavors, fragrances, and cosmetic actives production, has recently announced a merger with the nutrition unit of DuPont Inc. IFF won DuPont’s nutrition & biosciences (N&B) unit in the deal worth $26.2 Billion, turning it into a giant merger worth $45 Billion.
IFF stated that the stakeholders of DuPont will have 55.6% shares in the new company and IFF stakeholders will own shares worth $44.6% as per the terms and conditions mentioned in the deal agreement. IFF further added that the bill received an anonymous approval from boards of both the companies. It is also said that as the deal closes, DuPont will also be acquiring cash payment worth $7.3 Billion at the same time.
Edward D. Breen, Executive Chairman, DuPont, stated that the company conducted a thorough process to select a perfect strategic partner for its N&B unit and IFF was finally preferred to create the desired merger. This new giant merger worth $45 Billion will be run by Andreas Fibig, IFF CEO, as a new board chairman. Fibig added that the merger will be soon turn out as a leading provider of various ingredients & solutions and capable to satisfy the evolving needs of the customers. IFF expects to save nearly $300 Million upon closing this deal by the time the third year ends. The merger will be based on the Reverse Morris Trust tax structure to avoid big tax bills.
Meanwhile, Ireland-based Kerry Group failed to win the DuPont’s N&B unit. Losing this public race worth $26.2 Billion is surely a disappointment for Kerry Group. The company was seeking opportunities to expand its reign in the food and nutrition industry with bakery and cheese products since a long time. Goldman Sachs served as Kerry’s advisor for this deal.
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