IFF announced it has entered into a definitive agreement to sell its Pharma Solutions business unit to plant-based ingredient company Roquette for an enterprise value of up to $2.85 billion. This deal represents an enterprise value to EBITDA multiple of about 13 times.
IFF’s Pharma Solutions business is a developer and manufacturer of pharmaceutical excipients, and it includes Global Specialty Solutions businesses that support industrial and methyl cellulosic food applications. The Pharma Solutions operation being sold to Roquette is primarily made up of businesses within IFF’s existing Pharma Solutions division, with some adjustments to the perimeter of the transaction designed for aligning customers, businesses, and the manufacturing footprint.
Pharma Solutions operates 10 R&D and/or production sites worldwide, with about 1,100 employees, and generated approximately $1 billion in revenue last year. And IFF and Roquette expect to close the transaction in the first half of 2025, subject to closing conditions, including regulatory approvals.
J.P. Morgan Securities acted as the exclusive financial advisor to IFF. Skadden, Arps, Slate, Meagher & Flom acted as counsel, and Evercore as an advisor to the board.
KEY QUOTES:
“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. An important next step in our portfolio optimization strategy, the sale of Pharma Solutions, along with other recent actions such as our dividend rightsizing, represents a significant step towards our commitment to reducing debt leverage to 3.0x or below. This also enables us to increase focus on the core drivers of long-term profitable growth and maximize value for our shareholders. We are grateful for the many contributions of our Pharma colleagues and are confident that with Roquette, the Pharma Solutions business will be well positioned to expand its industry leadership through continued investment in innovation to meet the evolving needs of pharmaceutical manufacturers and developers worldwide.”
– IFF CEO Erik Fyrwald
“We are excited to enter into this partnership with the talented Pharma Solutions team at IFF, which has grown into the go-to partner in the pharmaceutical excipients and specialty solutions markets globally. The combination of our excipients expertise with IFF Pharma is a fantastic opportunity to become a true global specialist of drug delivery and oral dosage solutions, responding to the needs of our customers and to the demands of patients who are looking for continuously better treatments.”
– Pierre Courduroux, CEO of Roquette
