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International Flavors (IFF) to Acquire Fragrance Resources

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New York-based International Flavors & Fragrances Inc. (IFF - Free Report) recently announced that it has agreed to acquire the privately-held fragrance company, Fragrance Resources. Financial terms of the deal were not disclosed.

As revealed, Fragrance Resources is recognized for its product line of specialty fine fragrances. The company serves its customers through its facilities in Germany, North America, France, and China.

International Flavors & Fragrances intends to fund the transaction through its existing resources. Completion of the transaction, anticipated in Jan 2017, is subject to fulfilment of customary closing conditions and regulatory approvals.

With the addition of Fragrance Resources, International Flavors & Fragrances expects to boost its fragrances businesses among faster-growing regional customers. The acquired assets are anticipated to generate incremental revenues of $75 million in 2017 as well as modestly boost earnings in the year.

We believe such acquisitions are consistent with International Flavors & Fragrances’ expansionary policy and its Vision 2020 business strategy. The company prefers to invest in acquisitions as a means to gain access to new customers, regions and technologies. A diverse portfolio and product mix, along with new business wins, should help it deliver solid results in the quarters ahead.

INTL F & F Price and Consensus


INTL F & F Price and Consensus | INTL F & F Quote

Zacks Rank & Stocks to Consider

With a market capitalization of $10.3 billion, International Flavors & Fragrances currently carries a Zacks Rank #2 (Buy). Other stocks worth mentioning in the industry include NewMarket Corporation , Ferroglobe PLC (GSM - Free Report) and Mineral Technologies Inc. (MTX - Free Report) . While NewMarket Corporation sports a Zacks Rank #1 (Strong Buy), both Ferroglobe and Mineral Technologies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NewMarket Corporation has witnessed upward earnings estimate revisions for 2016 over the past 60 days. Also, the company performed well in the last four quarters, with an average positive earnings surprise of 10.54%.

Ferroglobe PLC’s earnings estimates have improved for 2017 over the past 60 days.

Mineral Technologies Inc’s earnings estimates for 2016 and 2017 were revised upward over the last 60 days. It has an average positive earnings surprise of 3.42% for the last four quarters.

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