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IFF Announces Repurchase Program
Posted: July 26, 2007
International Flavors & Fragrances’ (New York) board of directors has approved a new program to repurchase up to $750 million worth or 15% of its shares, whichever is less, and has increased its quarterly dividend to 23 cents per share. The dividend will be payable on October 4, 2007, to shareholders of record as of September 20, 2007.
This buyback authorization permits IFF to effect the repurchases over the next two years through a combination of open market and privately negotiated transactions. A significant portion of the buyback will be completed through an accelerated share repurchase program, which IFF intends to execute this year. This new authorization replaces the company’s existing $300 million repurchase authority, which is 60% completed. Funding for the new program will be from existing operating cash flow and incremental borrowings.
The dividend increase follows a 14% increase to the company’s dividend that was announced in the fourth quarter of 2006. IFF’s current policy is to pay an annual dividend in the range of 30–35% of earnings.