International Flavors & Fragrances Acquires PowderPure

On April 10, 2017, International Flavors & Fragrances (IFF) announced that it acquired PowderPure on April 7, 2017. The acquisition takes IFF one step closer to its 2020 vision to generate revenue of $500.0 million–$1.0 billion through acquisitions. However, IFF didn’t disclose the financial details of the acquisitions.

PowderPure was established in 2000 and is based in Oregon. According to a company press release, “its patented Infidri drying technology to create all-natural food ingredients by eliminating water while leaving the taste, nutrition and color matrix intact. PowderPure currently focuses on whole fruits and vegetable powders, juice powders, as well as other specialty products.” However, its revenue details were unknown.

IFF chairman and CEO (chief executive officer) Andreas Fibig, said, “We are impressed with PowderPure’s commitment to innovation and believe that together, we are uniquely positioned to spark further discoveries.”

IFF stock fell 0.20% and closed at $131.94 for the week ended April 14, 2017. But IFF was still trading 7.3% above its 100-day moving average of $122.94. IFF closed 16.6% higher than its 52-week low of $113.16 and 8.1% below its 52-week high of $143.64. Analysts’ 12-month target price for IFF is $131.73. However, the stock is already trading above the analysts’ recommended target price.

The Materials Select Sector SPDR ETF (XLB), which holds 1.9% in IFF as of April 14, 2017, fell 2.4% for the week and closed at $51.31. The top holdings of this fund include Dow Chemical (DOW), DuPont (DD), and Monsanto (MON), with weights of 11.9%, 11.7%, and 8.9%, respectively, as of April 14, 2017.