Back to top

Image: Bigstock

International Flavors Spurs Business with PowderPure Buyout

Read MoreHide Full Article

New York-based International Flavors & Fragrances Inc. (IFF - Free Report) recently announced that, on Apr 7, it acquired Oregon-based Columbia Phytotechnology LLC (also known as PowderPure). Financial terms of the deal were not disclosed.

Over the last three months, shares of the company yielded 15.26% return, outperforming the gain of 6.10% seen by the Zacks categorized Chemical Specialty industry.

As revealed, PowderPure is recognized for its whole fruits and vegetable powders, juice powders, as well as other specialty products. It uses Infidri drying technology to eliminate water from natural food ingredients, creating minimally processed products with the original color, taste and nutrition.  

With the addition of PowderPure, International Flavors & Fragrances expects to strengthen its natural platforms and satisfy demand for natural and clean label products. We believe such acquisitions are consistent with the company’s expansionary policy and its Vision 2020 business strategy. It prefers to invest in acquisitions 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.

In early 2017, International Flavors & Fragrances acquired the privately-held fragrance company, Fragrance Resources. The acquired assets are expected to boost the company’s fragrances businesses among fast-growing regional customers while generating incremental revenues of $75 million in 2017. The deal is also expected to modestly boost earnings in the year.

Zacks Rank & Stocks to Consider

With a market capitalization of $10.5 billion, International Flavors & Fragrances currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include KMG Chemicals, Inc. , Versum Materials, Inc. and Flexible Solutions International Inc. (FSI - Free Report) . While both KMG Chemicals and Versum Materials sport a Zacks Rank #1 (Strong Buy), Flexible Solutions International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

KMG Chemicals witnessed upward earnings estimate revisions for fiscal 2017 and fiscal 2018 over the past 60 days. Also, the company performed well in the last four quarters, with an average positive earnings surprise of 10.63%.

Versum Materials’ earnings estimates for fiscal 2017 and fiscal 2018 were revised upward, over the last 60 days. Also, results were better-than-expected with a positive earnings surprise of 17.50% in the last quarter.

Flexible Solutions International’s earnings estimates for 2017 were revised upward over the last 60 days. It has an average positive earnings surprise of 6.25% for the last four quarters.

Looking for Ideas with Even Greater Upside?

Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Flexible Solutions International Inc. (FSI) - free report >>

International Flavors & Fragrances Inc. (IFF) - free report >>

Published in