Frutarom’s shareholders have overwhelmingly approved the $7.1 billion merger with International Flavors and Fragrances (IFF) at a meeting held on Tuesday.
Of the shareholders present at the meeting, 94.6% voted in favour of the proposed merger, representing approximately 74.7% of all outstanding shares.
IFF agreed to acquire Frutarom earlier this year, and IFF claims that the merger will establish the company as the largest natural flavours and ingredients company in the world.
The finalisation of the merger partially relied on the approval of Fruatrom’s shareholders, which IFF has now attained, though the deal still needs to be approved by the relevant regulatory authorities.
A statement released by Frutarom estimated that the merger should be completed by the fourth quarter of 2018.
According to IFF, the combined business will aim to meet consumer demand for healthy, natural ingredients by producing solutions for the health and wellness segments.
IFF chairman and CEO, Andreas Fibig said: “We are pleased that Frutarom shareholders have approved the combination with IFF, marking another milestone on our path to unlock the value creation potential of the combined company.
“Together, IFF and Frutarom will become a global leader in taste, scent and nutrition, with a broader customer base, more diversified product offerings and increased market penetration.
“Through our integration planning work, we continue to be confident in the opportunities that lie ahead and the ability of the combination to accelerate profitable growth, enhance free cash flow and generate greater returns for IFF shareholders.”
Ori Yehudai, president and CEO of Frutarom added: “We appreciate the support from our shareholders as this transaction represents a landmark moment for Frutarom, delivers significant and immediate cash value to our shareholders and provides an opportunity to participate in the substantial potential upside of the combination.
“We continue to work closely with IFF’s management team to ensure the successful completion and integration of our two great companies, and we look forward to driving growth by capitalising on the best of both organisations.”
© FoodBev Media Ltd 2019