IFF completes US$2.85B sale of Pharma Solutions to Roquette

USA—International Flavors & Fragrances Inc. (IFF) has officially completed the sale of its Pharma Solutions business unit to Roquette, marking a significant milestone in the company’s ongoing transformation.

The transaction, valued at US$2.85 billion, is part of IFF’s broader strategy to streamline its portfolio and focus on its core strengths in flavors, fragrances, food ingredients, and biosciences.

This divestiture is not only a financial maneuver but also a strategic decision aimed at strengthening IFF’s long-term position in the market.

 According to Erik Fyrwald, CEO of IFF, the completion of the Pharma Solutions sale allows the company to achieve its targeted net debt to credit-adjusted EBITDA ratio of below 3.0x, a key financial metric that underscores IFF’s commitment to maintaining a healthy balance sheet and reducing leverage.

Fyrwald emphasized that this move aligns with IFF’s core strategy, enabling the company to capitalize on growth opportunities within its primary business areas and ultimately maximize value for shareholders.

The decision to divest comes at a time when IFF, like many in the sector, has experienced changing market dynamics, including softer demand in its food ingredients segment due to inflation and higher interest rates impacting end-users such as consumer goods companies.

By selling the Pharma Solutions unit, which generated approximately US$1 billion in revenue in 2023 and operates ten research and production sites globally with about 1,100 employees, IFF can now concentrate resources and investment on its higher-margin businesses.

Fyrwald expressed his gratitude to the Pharma Solutions team, acknowledging their dedication and exceptional customer service over the years.

 He extended best wishes to his former colleagues as they transition to Roquette, expressing confidence that the business will thrive under its new ownership.

For Roquette, a French leader in plant-based ingredients and pharmaceutical excipients, acquiring IFF’s Pharma Solutions represents a strategic leap forward.

The acquisition will bolster Roquette’s global presence in drug delivery solutions and reinforce its position in the health and nutrition markets.

Pierre Courduroux, CEO of Roquette, described the deal as a decisive step in the company’s journey to become a global specialist in pharmaceutical excipients and oral dosage solutions, complementing its earlier acquisition of Qualicaps in 2023.

Looking ahead, IFF remains committed to innovation and sustainability, focusing on enhancing everyday products and promoting wellness worldwide.

 With its headquarters in New York, the company aims to continue creating value through science, creativity, and a renewed strategic focus on its core businesses.

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