When it announced the $7.1bn (£5.26bn) deal in May, IFF said the takeover would enable it to offer customers a broader range of products, and allow both firms to make $145m in cost-savings by the end of the third full-year. With all applicable antitrust and competition laws now satisfied, IFF said it was on-track to complete the deal by early October – ahead of its original plan. “We are pleased that we’ve received our final antitrust clearance from Russia to proceed with our combination with Frutarom,”​ said IFF Chairman and chief executive Andreas Fibig. “Building on our strong momentum – having obtained Frutarom shareholder approval and receiving all relevant antitrust clearance – we continue to make significant progress in our integration planning. ​ ‘On-track to close the transaction’​ “With great execution from our teams, we are on-track to close the transaction in early October – ahead of our original expectation.”​ With a primary focus on natural ingredients, 70% of Frutarom’s sales are made to local and mid-size customers. In all, the Israeli-headquartered firm sells 70,000 products to 30,000 customers in 150 countries. Under the terms of the deal, Ori Yehudai, president and chief executive of Frutarom, will serve as a strategic adviser supporting Fibig. IFF will remain headquartered in New York, but will maintain a presence in Israel. ‘More exposure to fast-growing end-markets’​ By combining with Frutarom, IFF said it would have “more ​exposure to fast-growing end-markets and an enhanced platform to deliver sustainable, profitable growth”​​​. Earlier this year, Frutarom purchased UK-based Flavours & Essences for £14.75m​​​. That deal was dwarfed by its acquisition of fellow Israeli firm Enzymotec last December. Having owned 19% of the company, Frutarom bought the remaining 81% for $210m (£158m). Further consolidation in the flavourings sector came in March when Swiss giant Givaudan agreed to buy a 40.6% stake in French firm Naturex​​​​ for €522m (£457m), and launch a cash tender offer for the remaining shares. The successive takeovers have meant the global flavourings market is now dominated by four companies – IFF, Symrise, Givaudan and Firmenich.
US-based International Flavors and Fragrances (IFF) has announced that its $7.1bn acquisition of Israeli company Frutarom has received full regulatory approval following antitrust approval from Russia. The deal is expected to close by early October, ahead of the original scheduled closing time. As per the deal, Frutarom president and chief executive Ori Yehudai will serve as strategic adviser supporting Fibig. The combined companies will be headquartered in New York, but maintain a presence in Israel.