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INTERNATIONAL FLAVORS & Fragrances Inc. and Bush Boake Allen Inc. have approved a definitive merger, under which IFF will acquire all of the outstanding shares of BBA for $48.50 per share in cash. The deal amounts to $970 million based upon BBA's roughly 19.9 million common shares outstanding on a fully diluted basis. Under the terms of the deal, International Paper Co., which owns about 68 percent of BBA, has agreed to tender its shares.
Calling the move a "catalyst to accelerate change," Richard A. Goldstein, IFF's newly appointed chairman and CEO, sees this acquisition as an opportunity for IFF to move into new markets and "reinvent ourselves." He notes that BBA gives IFF a strategic position in India and will serve to help IFF's weak food flavor operations.
"This is the right transaction at the right time for IFF," says Mr. Goldstein. "Over the 125 days since I joined IFF, I have visited numerous company locations around the world, meeting with co-workers and customers. During that time, I emphasized our commitment to take the necessary steps to ensure that IFF remains the standard by which all others are measured in the flavor and fragrance industry."
At the same time, Mr. Goldstein says BBA was the best property available on the market. "It complements our flavor, fragrance and aroma chemical businesses and has solid management in North America and India, two areas where we need assistance and strength," he explains.
The management talent IFF has gained is in the form of Julian Boyden, BBA's CEO, who will join IFF's executive management team and head the integration team as executive vice-president. "We believe that IFF is the ideal partner for BBA. Our board conducted an extensive process, and we found that this combination...