IFF, a global leader in flavor, scent, health and biosciences, has recently entered into an agreement to sell its Flavor Specialty Ingredients (FSI) business to UK-based private equity firm, Exponent for US$220 million.
Presently, FSI reports through IFF’s Scent division and is a leading manufacturer of synthetic and natural base aroma chemicals used in the flavor market. Cash proceeds from the transaction will be used to reduce outstanding debt.
IFF CEO Frank Clyburn said, “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.”
FSI is a leading manufacturer of specialty base aromas with a broad range of more than 1,000 aroma chemicals and natural extracts, which provide inputs primarily to the flavor market. FSI includes 4 dedicated manufacturing and distribution facilities in the UK (2), US and China. FSI serves more than 970 customers and generated more than US$100 million in its last financial year.
