IFF (NYSE: IFF) has announced a definitive agreement to sell its Pharma Solutions business unit to Roquette, a French leader in plant-based ingredients, for an enterprise value of up to $2.85 billion.
This transaction, representing an enterprise value to EBITDA multiple of approximately 13x, includes IFF’s Pharma Solutions business, known for developing and manufacturing pharmaceutical excipients, as well as its Global Specialty Solutions business, which supports industrial and methyl cellulosic food applications.
The sale to Roquette primarily consists of businesses within IFF’s existing Pharma Solutions division, with some adjustments to the transaction’s scope to align customers, businesses, and manufacturing operations.
“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,” stated IFF CEO Erik Fyrwald.
“The sale of Pharma Solutions, part of our portfolio optimization strategy, along with other recent actions such as our dividend rightsizing, is a significant step towards our commitment to reducing debt leverage to 3.0x or below.
This 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.”
“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,” added Pierre Courduroux, CEO of Roquette.
“The combination of our excipients expertise with IFF Pharma is a fantastic opportunity to become a truly 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.”
Pharma Solutions 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. J.P. Morgan Securities LLC served as the exclusive financial advisor to IFF, Skadden, Arps, Slate, Meagher & Flom LLP acted as counsel, and Evercore served as an advisor to the board.
