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


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.”

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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.


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