Last June when the news broke of the DSM and Firmenich merger, I remember professionals from around the world were stopping by the Perfumer & Flavorist+ (P&F+) booth at SIMPPAR asking if we knew the scoop all along. Unfortunately for me, the deal was tight-lipped, but I was looking forward to what this merger meant for the future of the companies and the innovation to come. This sentiment is echoed when news of acquisitions comes down the pipeline regarding the sales of entire companies or of various segments.
The food flavors market is projected to reach $20.12 billion by 2028, exhibiting a CAGR of 4.64% during the forecast period between 2021-2028, according to Fortune Business Insights. With such promising growth across the market, P&F+ is covering headlines of companies selling flavor segments to prepare for the next move. The latest include IFF and Kerry, both of which share the logistical details of the pending sales and the future of the businesses.
IFF announced plans to sell its Savory Solutions Group to private equity firm PAI Partners. The agreement values the business at approximately $900 million, with net cash proceeds fewer taxes and expenses being utilized to reduce any outstanding debts. The transaction is expected to close in the second quarter of 2023.
On January 11, 2023, Kerry Group announced that it has entered into exclusive negotiations to sell the trade and assets of its Sweet Ingredients portfolio to IRCA for a consideration of €500 million ($540,482,500). The potential sale is subject to relevant regulatory approvals and routine closing adjustments. Employee consultation and information processes have commenced in relevant jurisdictions.