IFF announces the sale of its Savory Solutions Group to PAI Partners

IFF announces the sale of its Savory Solutions Group to PAI Partners
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IFF announces an agreement to sell its Savory Solutions Group to PAI Partners, a global private equity firm with a strong focus on the food and consumer industry. The transaction values the business at approximately 900 million dollars, and cash proceeds net of taxes and expenses will be primarily used to reduce outstanding debt.

“A key aspect of our strategy is to continuously evaluate our portfolio to identify opportunities to maximize shareholder value,” said Frank Clyburn, chief executive officer, IFF. "The sale of IFF’s Savory Solutions Group is a milestone as it allows us to focus on our highest-return businesses, improve our capital structure and enhance our go-forward growth and return profile. We appreciate the contributions of our Savory Solutions colleagues, who have, for years, demonstrated their commitment to innovation, service, and quality. We will work closely with PAI Partners to have a successful transition and look forward to Savory Solutions’ future under its ownership.”

IFF’s Savory Solutions Group, focuses primarily on ingredients for prepared foods and food service, including products for butchers and plant-based solutions for the vegan and vegetarian markets. It includes several business units operating in Austria, Germany, Italy, Ireland, Poland, Canada, Mexico, and Thailand. With approximately 1,800 employees, IFF’s Savory Solutions served more than 11,000 customers and generated approximately 475 million dollars in revenue over the last 12 months. The transaction values the business at approximately 14x the last 12-month EBITDA.

IFF and PAI Partners expect to close the transaction in the second quarter of 2023, subject to customary closing conditions, including satisfaction of applicable consultation requirements and regulatory clearances.

J.P. Morgan Securities LLC and Lazard acted as financial advisors to IFF, and Cleary Gottlieb Steen & Hamilton LLP provided legal support.

Cautionary Statement under the Private Securities Litigation Reform Act of 1995

This press release contains a “forward-looking statement” within the meaning of the federal securities laws, including Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often address expected future business, financial performance, financial condition and often contain words such as expect, anticipate, intend, plan, believe, seek, see, will, would, target, similar expressions and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the proposed transaction and the expected timetable for completing the proposed transaction. The forward-looking statements included in this release are made only as of the date hereof, and we undertake no obligation to update the forward-looking statement, to reflect subsequent events or circumstances.

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