PAI Partners has closed its acquisition of the Savory Solutions business unit of publicly traded International Flavors & Fragrances (IFF) at a valuation of $900 million. With the close of the acquisition, PAI has renamed the Savory Solutions business to NovaTaste with a headquarters in Salzburg, Austria.
NovaTaste is a provider of ingredients for prepared foods and foodservice, including products for butchers, and plant-based products for the vegan and vegetarian markets. NovaTaste’s products – used to improve texture and taste, and extend shelf life – include functional ingredients, starter cultures, casings, spices and seasonings, vinegar and oil, and ready-to-cook or ready-to-eat components.
NovaTaste goes to market under a set of brands, including Wiberg, Piasa, AMcO, Gewürzmüller and Redbrook that came to IFF as part of its 2018 acquisition of Frutarom Industries, an Israel-based flavors and natural ingredients company.
The company operates 17 manufacturing facilities, has approximately 1,800 employees, and includes business units operating out of Austria, Germany, Italy, Ireland, Poland, Canada, Mexico and Thailand.
NovaTaste had trailing twelve-month revenues of $475 million and EBITDA of $64 million. Based on the purchase price of $900 million, this values the business at 14x TTM EBITDA.
New York City-headquartered International Flavors & Fragrances (NYSE: IFF) specializes in the creation and production of flavors, fragrances, and other specialty ingredients that are used to enhance the taste, scent, and sensory experiences of food and beverages, personal care products, and household goods. IFF has more than 24,000 employees across 65 countries, more than 110 manufacturing facilities, 100 R&D centers, and 33,000 customers across the world.
“The sale of Savory Solutions represents our continued efforts to optimize our portfolio as we focus on core businesses and strengthen our capital structure,” said Frank Clyburn, the CEO of IFF. “We remain steadfast in our commitment to further pursue portfolio optimization opportunities as we drive toward our deleverage target by the end of 2024. We’re grateful to our Savory Solutions colleagues, who have demonstrated their commitment to innovation, service and quality. We wish them the best in their new journey.”
Paris-headquartered PAI Partners invests in business services, food, consumer, general industrials, and healthcare companies based in the United States and Europe. PAI was founded in 1994 but its origins date back to Paribas Affaires Industrielles, a private equity operating unit of Paris-headquartered BNP Paribas which was founded in 1872.
J.P. Morgan Securities and Lazard were the financial advisors to IFF on the sale of NovaTaste.
© 2023 Private Equity Professional | June 7, 2023
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- Source: https://peprofessional.com/blog/2023/06/06/pai-completes-buy-of-iff-savory-solutions-business/
