IFF to merge with DuPont’s Nutrition & Biosciences unit

International Flavors & Fragrances (IFF) has entered a definitive agreement to merge with the Nutrition & Biosciences (N&B) unit of DuPont in a Reverse Morris Trust transaction.

The merger will lead to the formation of a new combined company with an estimated enterprise value of $45.4bn.

DuPont shareholders will hold a 55.4% stake in the newly formed company. IFF shareholders will own the remaining 44.6% stake.

DuPont will receive a one-time cash payment of $7.3bn, subject to adjustment at the time of completion.

IFF chairman and CEO Andreas Fibig said: “The combination of IFF and N&B is a pivotal moment in our journey to lead our industry as an invaluable innovation and creative partner for our customers.

“Together, we will create a leading ingredients and solutions provider with a broader set of capabilities to meet our customers’ evolving needs.

“With highly complementary portfolios, we will have global scale and leading positions in key growth categories to capitalise on positive market trends, drive strong profitable growth for our shareholders and create opportunities for our employees.”

The boards of directors of both the companies unanimously approved the deal.

The new company will offer high-value ingredients and solutions for the global food and beverage markets.

Upon completion of the deal, the newly formed company will have a total of 13 directors, which comprises seven from IFF and six DuPont appointees. After the annual meeting in 2022, there will be six directors from each company.

DuPont executive chairman Ed Breen said: “DuPont and IFF share long and successful histories of customer-driven innovation and cultures of excellence, which is why I am confident that N&B will be well-positioned for its next phase of growth.

“I am pleased to join the board of the combined organisation and remain involved in unlocking the potential of this new company.”