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IFF, US-based industry leader in food, beverage, scent, health and biosciences, has entered into an agreement to sell its Flavour Specialty Ingredients (FSI) business to Exponent, a leading UK-based private equity firm, for $220 million in cash proceeds.
FSI reports through IFF’s Scent division and is a leading manufacturer of synthetic and natural base aroma chemicals used in the flavour market. Cash proceeds from the transaction, net of taxes and expenses, will be used to reduce outstanding debt.
“The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns”, said Frank Clyburn, Chief Executive Officer, IFF.
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 flavour market. FSI includes four dedicated manufacturing and distribution facilities at Teesside and Hartlepool, United Kingdom; Cincinnati, United States; and Pucheng, China, with additional points of distribution in Mexico, Brazil and Hong Kong. With approximately 340 employees, IFF’s FSI business serves more than 970 customers and generated more than $100 million in revenue over the last 12 months.
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