IFF (NYSE: IFF) has recently announced the sale of its Pharma Solutions business unit to Roquette for an enterprise value of up to $2.85 billion. This represents an enterprise value to EBITDA multiple of approximately 13x. The Pharma Solutions business 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 to align customers, businesses, and the manufacturing footprint.
The Pharma Solutions business operates 10 research and development and/or production sites globally, with approximately 1100 employees, and generated approximately $1 billion in revenue in 2023. The transaction is expected to close in the first half of 2025, subject to applicable information and/or consultation requirements and customary closing conditions, including regulatory approvals.
IFF's CEO, Erik Fyrwald, stated that the sale of Pharma Solutions, along with other recent actions such as dividend rightsizing, represents a significant step towards the commitment to reducing debt leverage to 3.0x or below. This move will also enable the company to increase focus on the core drivers of long-term profitable growth and maximize value for its shareholders.
Pierre Courduroux, CEO of Roquette, expressed excitement about entering into a partnership with IFF's talented Pharma Solutions team, highlighting the potential to become a global specialist of drug delivery and oral dosage solutions.
The press release did not provide specific information on the change in revenue or other financial metrics compared to the previous period. Today the company's shares have moved -1.2% to a price of $82.79. For more information, read the company's full 8-K submission here.
