IFF to acquire David Michael’s flavours business in US

US-based International Flavors & Fragrances (IFF) has entered into an agreement to acquire David Michael & Company, an American manufacturer of flavours, stabilisers and natural colours.

Financial terms of the deal have not been disclosed by either company.

Established in 1986, David Michael offers its products to the dairy and beverage industries, as well as the middle-market customers.

IFF chairman and CEO Andreas Fibig said: “This bolt-on acquisition of David Michael is another important milestone in IFF’s Vision 2020 business strategy, helping us to win where we compete in the world’s largest flavours market as we look to further accelerate growth.

“IFF and David Michael share a strong commitment to innovation, rich histories, and a passion for our customers, making them a great addition to our organisation.”

The completion of this transaction is subject to clearance by the relevant regulatory authorities and satisfaction of other customary closing conditions.

Funded from existing resources, the transaction is expected to add revenue of approximately $85m by next year.

IFF group flavours president Matthias Haeni said: “For three generations, David Michael has been a vital player in the industry, building an outstanding portfolio of capabilities and customer relationships.

“Merging and leveraging the strengths of both IFF-Ottens Flavors, acquired in 2015, and David Michael, we look to further reinforce our differentiated service model in the US for middle-market customers, focused on innovation, agility, and enhanced collaboration.

“The unique go-to-market platform is fuelled by technologies that spark the senses and transform the everyday. We look forward to welcoming David Michael into the IFF family.”

The transaction is expected to close in the fourth quarter of this year, and David Michael and IFF will operate as separate companies until then.