IFF has entered into an agreement to sell its Flavor Specialty Ingredients (FSI) business to Exponent, a UK-based private equity firm, for $220 million.
FSI reports through IFF’s Scent division and is a manufacturer of synthetic and natural base aroma chemicals used in the flavor market.
“Aligned with our strategy, we’re continuously evaluating our portfolio to identify opportunities to strengthen our financial profile,” said IFF CEO Frank Clyburn. “The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns.
“We appreciate the contributions of our FSI colleagues, who have shared our commitment to quality and customer service. We will work closely with Exponent to have a successful transition and look forward to FSI’s bright future.”
IFF’s FSI is a manufacturer of specialty base aromas with a broad range of more than 1,000 aroma chemicals and natural extracts, which provide inputs primarily to the flavor market. FSI includes four dedicated manufacturing and distribution facilities at Teesside and Hartlepool, United Kingdom; Cincinnati, United States; and Pucheng, China, with additional points of distribution in Mexico, Brazil and Hong Kong.
With approximately 340 employees, IFF’s FSI business serves more than 970 customers and generated more than $100 million in revenue over the last 12 months.
IFF and Exponent expect to close the transaction by the end of Q3 2023, subject to customary closing conditions.