Building on the previously announced merger between International Flavors & Fragrances (IFF) and DuPont’s Nutrition & Biosciences (N&B) business, the companies have announced the new guiding purpose and vision, operating model, and executive committee for the intended combined company. The companies continue to expect that the transaction will close in the first quarter of 2021.
The combined company will be guided by a purpose and vision that touches on the core strengths of each business, helping unify the future organization toward one shared goal. The combined company’s purpose is, “Applying science and creativity for a better world.” Core to the combined company’s strategy for success, a central vision will guide future strategy and initiatives: “Be the partner for essential solutions.” With this simple statement, the combined company declares that it intends to play a leadership role in the global food, beverage, beauty, household, personal care, and pharmaceutical supply chains and is committed to doing more good for its customers, its people, and its communities.
The combined company’s organizational and go-to-market model will leverage the capabilities and offerings of both organizations to create a sustainable framework that best positions their teams, customers, and shareholders for success. The organization will include the following four divisions:
Taste, Food & Beverage. Bringing together IFF’s Taste division and N&B’s Food & Beverage segment, Taste, Food & Beverage will represent approximately $6.1 billion in pro forma 2019 net sales for the combined company. IFF’s Taste offering includes flavor compounds and natural taste solutions, such as savory solutions and inclusions. N&B’s Food & Beverage portfolio includes natural and plant-based specialty food ingredients, such as functional solutions, protein solutions, emulsifiers, and sweeteners. IFF Chairman and CEO Andreas Fibig intends to be actively involved in guiding this division—the combined company’s largest, with significant opportunity in integrated solutions— to achieve the compelling benefits of this combination.
Health & Biosciences. The combined company’s Health & Biosciences (H&B) division will represent approximately $2.3 billion in pro forma 2019 net sales for the company. This division will contain N&B’s current Health & Biosciences business, except for food protection, which will become part of the combined company’s Taste, Food & Beverage division. IFF’s legacy Health Ingredients and parts of Natural Products Solutions will also become part of the new H&B division. This portfolio will include sustainable, clean label, and high-performance solutions such as probiotics, infant nutrition, HMO, fibers, cultures, food enzymes, home and personal care, animal nutrition, biorefineries, and microbial control.
Scent. Composed of IFF’s Scent division, the combined company’s Scent division will represent approximately $2 billion in pro forma 2019 net sales for the combined company. The Scent offering includes fine fragrance, consumer fragrance, and cosmetic actives segments, as well as natural and synthetic ingredients.
Pharma Solutions. The Pharma Solutions division at the combined company, composed of N&B’s current Pharma Solutions business, will represent approximately $800 million in pro forma 2019 net sales for the combined company. This portfolio will include N&B’s leading functional excipients for pharma and dietary supplements, as well as cellulosic products for industrial applications. This offering will provide specific solutions such as controlled and immediate release dosage formats, soft and hard capsules, and alginates for anti-reflux applications.
A new Integrated Solutions Center of Excellence will be created to focus on incubating new business opportunities in total product solutions. In addition, IFF will establish a Center for Commercial Excellence to support business and commercial teams through the development of best practices, customer insights analysis, resource deployment, and the optimization of pricing strategies and solutions. Each group will be led by a newly appointed senior executive that will report to Fibig.