IFF Announces Sale of Microbial Control Business
IFF | August 27, 2021
IFF today announced it has entered into an agreement to sell its Microbial Control business unit to LANXESS, a leading specialty chemicals company that develops, manufactures and markets chemical intermediates, additives, specialty chemicals and plastics. The transaction is valued at $1.3 billion and the cash proceeds net of taxes and expenses will be primarily used to reduce outstanding debt.
“Today’s announcement is part of a strategic portfolio review and is guided by our commitment to enhance long-term shareholder value,” said IFF Chairman and CEO, Andreas Fibig. “This transaction is driven by the best-owner mindset and allows us to focus on our core businesses as we strengthen our balance sheet and maximize shareholder return. The divestiture also enhances IFF’s financial profile, providing growth acceleration and higher margins.”
Mr. Fibig continues, “We appreciate the contributions of our Microbial Control colleagues, who have built a strong business based on innovation, passion and commitment. We will work closely with LANXESS to have a successful transition and look forward to Microbial Control’s future under LANXESS’ ownership, a strong match for their combined growth.”
IFF’s Microbial Control business unit is a global leader that provides innovative and sustainable solutions. With a presence across a broad range of industry segments and an estimated 2021 annual revenue of approximately $440 million and an EBITDA of approximately $85 million, Microbial Control is composed of approximately 270 colleagues with two production facilities in the United States. The business unit specializes in offering preservation and hygiene solutions for a wide array of industrial and consumer applications, including paints & coatings, building materials, animal biosecurity, personal care, and home care. It is also active in the treatment and preservation of industrial water used in production, cooling towers and pulp & paper. Microbial Control joined IFF through the combination with DuPont Nutrition & Biosciences earlier this year.
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains “forward-looking statement” within the meaning of the federal securities laws, including Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the proposed transaction and the expected timetable for completing the proposed transaction. The forward-looking statements included in this release are made only as of the date hereof, and we undertake no obligation to update the forward-looking statement to reflect subsequent events or circumstances.
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