IFF to acquire David Michael

International Flavors & Fragrances Inc. (IFF), a New York-headquartered flavor and fragrance supplier, said it entered into an agreement to acquire David Michael & Company Inc., Philadelphia. Founded in 1896, David Michael is a privately held flavor company well known in the industry for its vanilla expertise, strength in the dairy and beverage categories, and relationships with dynamic, fast-growing middle-market customers, IFF said.

“This bolt-on acquisition of David Michael is another important milestone in IFF’s Vision 2020 business strategy, helping us to win where we compete in the world’s largest flavors market as we look to further accelerate growth,” said Andreas Fibig, IFF's chairman and CEO. “IFF and David Michael share a strong commitment to innovation, rich histories and a passion for our customers, making them a great addition to our organization.”

The transaction, funded from existing resources, is expected to add approximately $85 million in revenue in 2017, IFF said. Financial terms of the deal were not disclosed.

The completion of this transaction is subject to clearance by the relevant regulatory authorities and satisfaction of other customary closing conditions, the company addded. Until the transaction closes, which is expected to occur in the fourth quarter of 2016, David Michael and IFF will operate as separate companies.