IFF merging with DuPont Nutrition division to create a 45B consumer giant

International Flavors & Fragrances Inc. reached a $26.2 billion agreement for DuPont Inc.’s nutrition division, prevailing over Ireland’s Kerry Group Plc as it continues to expand in the fast-growing food-ingredients business.

The transaction will create a new company comprised of the bidder’s assets and DuPont’s nutrition business. The new company will have an enterprise value of $45.4 billion, with DuPont shareholders getting a 55.4% stake and IFF shareholders getting 44.6%, the companies said in a statement Sunday after Bloomberg News reported the deal was near.

For DuPont, the agreement extends a dramatic overhaul of the company’s portfolio as it looks to salvage shareholder value in the face of the U.S.-China trade war that has crimped growth.

DuPont will receive a one-time cash payment of $7.3 billion once the deal is completed, expected in the first quarter of 2021. IFF CEO Andreas Fibig will be chairman and CEO of the new company, with Breen as the lead independent director starting in June 2021. The board will have 13 directors, including seven from IFF, until 2022, when the total drops to an evenly split 12.

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