IFF’s Pharma Solutions business develops and manufactures pharmaceutical excipients, with around 1100 employees across 10 research and development and production facilities worldwide, generating around $1bn in revenue last year
IFF to sell its Pharma Solutions unit to Roquette. (Credit: Martin Lostak on Unsplash)
US-based International Flavors and Fragrances (IFF) has agreed to sell its Pharma Solutions business unit to French plant-based ingredients provider Roquette for up to $2.85bn.
IFF’s Pharma Solutions business develops and manufactures pharmaceutical excipients, and its Global Specialty Solutions business supports industrial and methyl cellulosic food applications.
The Pharma Solutions unit to be sold to Roquette primarily constitutes the businesses within the company’s existing Pharma Solutions division.
IFF has made some adjustments to the outer limits of the transaction to align with customers, businesses, and manufacturing footprint.
Roquette CEO Pierre Courduroux said: “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 speciality solutions markets globally.
“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.”
The Pharma Solutions business operates 10 research and development and production facilities worldwide, with around 1100 employees, generating around $1bn in revenue last year.
Based in Lestrem, France in 1933, Roquette is a family-owned company producing plant-based ingredients, along with pharmaceutical excipients.
The company produces more than 650 by-products from the starch extracted from corn, wheat, potatoes, and peas, and also produces Polyols, the substances derived from food compounds.
The transaction is expected to close in the first half of 2025, subject to consultation requirements and customary closing conditions, including regulatory approvals.
J.P. Morgan Securities served as exclusive financial advisor to IFF, and Skadden, Arps, Slate, Meagher & Flom acted as counsel, and Evercore as an advisor to the IFF board.
IFF CEO Erik Fyrwald said: “The sale of Pharma Solutions, along with other recent actions such as our dividend rightsizing, represents a significant step towards our commitment to reducing debt leverage to 3.0x or below.
“This also enables us to increase focus on the core drivers of long-term profitable growth and maximize value for our shareholders.
“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.”