New York-based International Flavors & Fragrances Inc. IFF recently announced that it has successfully completed the acquisition of Philadelphia, PA-based Henry H. Ottens Manufacturing Co., Inc. Financial terms of the transaction, originally announced on Apr 13, were not disclosed.
Ottens, a privately held company specializing in flavors technologies, is well-recognized for its customer services. The firm has a solid client base especially in the U.K. Its addition to International Flavors & Fragrances’ business portfolio will strengthen the latter’s trade in North America.
Also, International Flavors & Fragrances hopes to realize incremental annual revenues of approximately $60 million as well as modest earnings in 2015 from the Ottens acquisition.
We believe the acquisition is consistent with International Flavors & Fragrances’ expansionary policy. The company focuses on investing in acquisitions to gain access to new customers, regions and technologies. A diverse portfolio and product mix, along with new business wins, should help the company deliver solid results in the quarters ahead.
The Zacks Consensus Estimate for International Flavors & Fragrances is pegged at $5.51 for 2015 and $5.98 for 2016, reflecting year-over-year growth of 8.5% and 8.6%, respectively. The company is scheduled to release first-quarter 2015 results on May 12 before the market opens.
With a market capitalization of $9.5 billion, International Flavors & Fragrances presently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include KMG Chemicals Inc. KMG, OM Group Inc. OMG and Ferro Corp. FOE. While KMG Chemicals sports a Zacks Rank #1 (Strong Buy), both OM Group and Ferro Corp. carry a Zacks Rank #2 (Buy).
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