Int'l Flavors & Fragrances Buys Bush Boake Allen

Int'l Flavors & Fragrances Buys Bush Boake Allen

NEW YORK--International Flavors and Fragrances Inc. (NYSE:IFF) has agreed to buy all outstanding shares of Bush Boake Allen Inc. (NYSE:BOA) for $48.50 per share. At about 19.9 million shares outstanding, the purchase price totals $970 million. Under terms of the purchase, IFF agreed to initiate the offer to buy the shares no later than Oct. 10, and the purchase will include shares owned by International Paper Co. (NYSE:IP), which owns around 68 percent of BOA outstanding stock.

Upon completion of the purchase, which is expected to be during fourth quarter 2000, IFF will have 6,600 employees and 120 locations with operations in 48 countries. Pro forma revenues for 1999 will be about $1.9 billion.

"This is the right transaction at the right time for IFF," said Richard Goldstein, chairman and chief executive officer (CEO) of IFF. "This transaction will be a catalyst to accelerate change. It is an opportunity for us to reinvent ourselves, enhance our leadership position and increase shareholder value." He added that BOA will provide IFF with complementary products and an increased scale of operations in key markets, especially India. He noted that the deal will ultimately help IFF significantly save costs in the neighborhood of $70 million with half that amount expected in 2001. The savings will come from consolidation of facilities, optimization of capacity, reduced selling and general and administrative expenses, and supply chain rationalization, according to IFF.

Julian Boyden, chairman, president and CEO of BOA, will join IFF's executive management team as executive vice president, and he will concentrate on integrating the two companies.