uploads///Part  CHEM IFF

IFF’s Frutarom Completes Acquisition of 60% in Thailand’s Mighty

By

Jan. 22 2019, Updated 1:25 p.m. ET

IFF’s Frutarom completes acquisition of 60% in Mighty

On January 18, International Flavors and Fragrances (IFF) announced that Frutarom acquired 60% of Mighty—a leading savory solutions provider in Thailand. However, the transaction’s financials weren’t disclosed.

The acquisition should strengthen International Flavors and Fragrances’ foothold in the region. The acquisition could help International Flavors and Fragrances improve its EPS. Amos Anatot, the president of International Flavors and Fragrances’ Frutarom Division, said, “The completion of this deal with Mighty underscores that the Frutarom division will continue on its growth strategy and pursue attractive companies that create new opportunities or build on current capabilities. And in this case, we are helping to grow our capabilities in savory solutions – already an area of strength for legacy Frutarom, now IFF.”

Article continues below advertisement

Stock performance

International Flavors and Fragrances stock gained 2.3% and closed at $138.06 for the week ending January 18. The gains helped the stock price trade above its 100-day moving average price. International Flavors and Fragrances traded 0.9% above the 100-day moving average price of $136.88. The company’s 100-day moving average price has fallen from a high of $150.

On a year-to-date basis, International Flavors and Fragrances stock has gained ~4.4%. Sensient Technologies (SXT) and Clorox (CLX) have gained 11.6% and 0.8%, respectively, while Estée Lauder (EL) has declined 0.8%.

Analysts expect International Flavors and Fragrances’ target price to be $148.4, which implies a return potential of 7.5% over the closing price as of January 18.

Investors looking for indirect exposure to International Flavors and Fragrances could consider the Invesco S&P 500 Equal Weight Materials ETF (RTM), which has invested 3.9% of its portfolio in the company as of January 18.

Advertisement

More From Market Realist

  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • Freeport-McMoRan employee at a facility
    Basic Materials
    FCX Stock Is a Good Buy for Investors as Copper Prices Top $10,000
  • Alcoa logo
    Basic Materials
    Alcoa (AA) or CENX: Picking the Best Aluminum Stock
  • U.S. Steel EAF
    Basic Materials
    U.S. Steel or Cleveland-Cliffs: Which Is the Best Steel Stock to Buy?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.