IFF Pharma Solutions Business Sold to Roquette

IFF (NYSE: IFF) has finalized an agreement to sell its Pharma Solutions business division to Roquette, a prominent French leader in plant-based ingredients, for an enterprise value of up to $2.85 billion. This transaction signifies an enterprise value to EBITDA multiple of approximately 13x. The Pharma Solutions unit of IFF specializes in developing and manufacturing pharmaceutical excipients, along with its Global Specialty Solutions business catering to industrial and methyl cellulosic food applications. The sale primarily encompasses businesses within IFF’s existing Pharma Solutions division, with adjustments made to the transaction’s scope to better align customers, businesses, and manufacturing operations.

Erik Fyrwald, CEO of IFF, expressed satisfaction with the agreement, stating, “We are pleased to reach an agreement with Roquette that will support Pharma Solutions’ next chapter of growth as a trusted partner for the pharmaceutical industry.” Fyrwald highlighted the sale as a crucial step in IFF’s portfolio optimization strategy, emphasizing the company’s commitment to reducing debt leverage to 3.0x or below. He also noted that the sale allows IFF to concentrate on core drivers of long-term profitable growth, thereby maximizing value for shareholders.

Pierre Courduroux, CEO of Roquette, expressed enthusiasm for the partnership, stating, “We are excited to enter into this partnership with the talented Pharma Solutions team at IFF.” Courduroux emphasized the opportunity to combine Roquette’s excipients expertise with IFF Pharma, aiming to become a global specialist in drug delivery and oral dosage solutions.

The Pharma Solutions business currently operates 10 research and development and/or production sites globally, with approximately 1100 employees, and generated around $1 billion in revenue in 2023. The transaction is expected to close in the first half of 2025, subject to customary closing conditions and regulatory approvals. J.P. Morgan Securities LLC served as the exclusive financial advisor to IFF, Skadden, Arps, Slate, Meagher & Flom LLP acted as counsel, and Evercore provided advisory services to the board.

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