International Flavors & Fragrances Inc. (IFF), New York, announced that it has entered into an agreement to acquire David Michael & Co. Inc., Philadelphia.
Founded in 1896, David Michael is a privately held flavors company that is well-known in the industry for its vanilla expertise, strength in the dairy and beverage categories, and relationships with dynamic, faster-growing middle-market customers, the company says. “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 flavors market as we look to further accelerate growth,” said IFF Chairman and Chief Executive Officer Andreas Fibig in a statement. “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 organization.”
Matthias Haeni, group president of flavors at IFF added: “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 U.S. for middle-market customers, focused on innovation, agility, and enhanced collaboration. The unique go-to-market platform is fueled by technologies that spark the senses and transform the everyday. We look forward to welcoming David Michael into the IFF family.”
The transaction, funded from existing resources, is expected to add approximately $85 million in revenue in 2017. Financial terms of the deal have not been disclosed.
The completion of this transaction is subject to clearance by the relevant regulatory authorities and satisfaction of other customary closing conditions. Until the transaction closes, which is expected to occur in the fourth quarter of 2016, David Michael and IFF will operate as separate companies.