International Flavors & Fragrances Inc. acquired Health Wright Products, Inc.
April 31, 2022
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International Flavors & Fragrances Inc. (NYSE:IFF) entered into an agreement to acquire Health Wright Products, LLC on February 16, 2022. Health Wright Products will join IFF's Health & Biosciences division. The company generated approximately $100 million in annual revenue in 2021 and employed over 225 people who will continue with the company after the sale. The sale is expected to close in the first quarter of 2022, subject to customary closing conditions, and regulatory clearances.
International Flavors & Fragrances Inc. (NYSE:IFF) acquired Health Wright Products, Inc. for approximately $160 million on April 1, 2022. As of May 9, 2022 Under the terms of the purchase agreement, International Flavors & Fragrances Inc agreed to pay approximately $131 million, of which approximately $123 million was paid on the Acquisition Date. Further contingent consideration will be payable upon achievement of certain earnout milestones, which is estimated to be approximately $44 million. Health Wright Products employs over 225 people, all of whom will continue with the company after the sale. As of August 8, 2022 The acquisition was accounted for under the purchase method. The fair value of consideration transferred was approximately $157 million, including cash and estimated contingent consideration of $31 million. The preliminary purchase price allocation has been performed and resulted in intangible assets of approximately $75 million, and approximately $45 million of goodwill.
International Flavors & Fragrances Inc. is one of the world leaders in designing, producing and marketing food, flavor, fragrance and pharmaceutical ingredients. Net sales break down by product family as follows:
- flavor ingredients (54.9%): primarily for the food industry (manufacturing of dairy products, beverages, prepared meals, confectionery products, etc.);
- natural, nutritional and health ingredients (18.8%): food cultures and enzymes, probiotics and specialized ingredients for the manufacturing of food supplements, functional foods and beverages, personal and household care products, animal nutrition products, etc.;
- fragrance compounds (18.5%): primarily for the manufacturing of cosmetics (deodorants, hair care products, etc.) and cleaning products (detergents, soaps, softeners, etc.);
- pharmaceutical excipients (7.8%): cellulosics and seaweed-based pharma excipients used mainly in the manufacturing of pharmaceutical products and food supplements.
At the end of 2022, the group has approximately 220 manufacturing sites in the world.
Net sales are distributed geographically as follows: North America (31%), Europe/Africa/Middle East (33.9%), Asia (23.1%) and Latin America (12%).