IFF Acquires Israel’s Aromor
Aromor Flavors and Fragrances Ltd. to bolster fragrance business at International Flavors & Fragrances Inc.
International Flavors & Fragrances Inc., a leading global creator of flavors and fragrances for consumer products, today said it completed the acquisition of Aromor Flavors and Fragrances Ltd., a privately held manufacturer and marketer of complex specialty ingredients that are used in fragrances and flavors.
Founded in 1982, and based in Israel in Kibbutz Givat Oz with sales offices in the United States, Aromor develops, produces and markets natural, natural identical and synthetic high value-added aroma and flavors ingredients for the perfume, cosmetics and food industries. Aromor has approximately 90 employees.
While terms of the transaction have not been disclosed, the Aromor operations would have represented approximately $35 million of incremental sales to IFF’s results in 2013 on a pro-forma basis. IFF funded the transaction from existing resources. Aromor will become part of the IFF Fragrances Ingredients business and is expected to be accretive to IFF’s earnings per share in 2014.
“We are pleased to complete this important strategic acquisition,” said IFF Chief Executive Officer Doug Tough. “We expect Aromor, with its strong R&D capabilities, to provide us with cost-effective, quality materials to use in our formula creations and external sales.”
“A key component of our overall Ingredients strategy is to provide cost-advantaged, specialty molecules that enhance our development of consumer preferred fragrance compounds,” added Nicolas Mirzayantz, Group President Fragrances. “We believe the use of the Aromor ingredients portfolio and their technology development process will be value enhancing by improving the overall profitability and win rate of our fragrance creations. We plan to continue to support the Aromor facility in Israel and invest in and develop their R&D and manufacturing capabilities in order to strengthen the development and production of specialty ingredients.”
“We welcome Aromor’s talented and dedicated team and are excited to bring their pipeline of specialty ingredients to IFF. The Aromor acquisition is complementary to our existing ingredients portfolio and is an important step in increasing our scale and expertise in Ingredients,” said Rob Edelman, SVP Fragrance Ingredients. “As Aromor is currently one of our suppliers, we have been working with the Aromor team for many years and are excited to have them join IFF. We look forward to working with the current Aromor management as they continue to lead and manage the company’s operations.”
Karen Cohen Khazon, is Aromor’s chief executive officer and president.
“Aromor is delighted to join the IFF family as it will enable accelerated growth for our business. Our R&D expertise, combined with IFF, will enable increased new product development and technology advances,” said Cohen.