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PE firm behind Quorn and Meadow Foods acquires ingredients business from IFF

PE firm behind Quorn and Meadow Foods acquires ingredients business from IFF
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Private equity firm Exponent has agreed to acquire IFF’s flavour specialty ingredients (FSI) division, a global leader in the base aromas market, for $220 million (£183m), the companies announced Thursday.

Headquartered in the UK, FSI is a leading supplier of high-value, specialty base aromas with a broad range of more than 1,000 aroma chemicals and natural extracts, which provide inputs primarily to the flavor market, predominantly serving food and beverage end markets.


The deal includes four dedicated manufacturing and distribution facilities at Teesside and Hartlepool in the UK, Cincinnati in the US and Pucheng, China, with additional points of distribution in Mexico, Brazil and Hong Kong. The business serves more than 970 clients across Europe, North America and Asia and generates over $100 million in revenue.

Exponent said the acquisition builds on the firm’s strong track record of investing in market leading food and beverage businesses, including Quorn Foods, the UK’s leading meat-alternative business and Meadow, the UK’s leading dairy ingredients business.

Its portfolio also includes Vibrant Foods, the leading producer and distributor of South Asian foods in the UK and the Scotch whisky business Loch Lomond Group.

Exponent added that it will support FSI’s ambitions to grow significantly, both organically and through acquisitions.

“We are delighted that we have agreed to acquire the FSI division from IFF. FSI is a global leader in the base aromas market, with a strong customer base and a differentiated portfolio of natural and aroma chemical products,” Mark Taylor, partner at Exponent, commented.

“This strong market position is founded on deep technical expertise and a reputation for supplying products of the highest quality. With further investment and support as an independent business, we see a significant opportunity to accelerate FSI’s growth.”

IFF, a leading ingredient solutions provider, said the cash proceeds from the transaction will be used to reduce outstanding debt.

“Aligned with our strategy, we’re continuously evaluating our portfolio to identify opportunities to strengthen our financial profile,” said Frank Clyburn, IFF chief executive.

“The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns. We appreciate the contributions of our FSI colleagues, who have shared our commitment to quality and customer service. We will work closely with Exponent to have a successful transition and look forward to FSI’s bright future.”

IFF and Exponent expect to close the transaction by the end of Q3 2023, subject to customary closing conditions.

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