FFG takeover begins for Technology Flavors & Fragrances
Fragrances is set to go private, as industry rival FFG Industries
begins a tender offer to acquire all of the firms outstanding
shares of common stock.
The deal for the small flavour house that, with under one hundred employees, posted $16 million (€12.6m) in sales last year, is due to close by mid-June.
The sale ends 'strategic alternatives' raised by Amityville-based TFF at the end of 2004, which included joint ventures, acquisitions or mergers.
Commenting at the time, Philip Rosner, CEO of TFF said: "The board and members of senior management have concluded that now is the time to attempt to leverage our position to protect and maximize shareholder value."
The move to acquire TFF is a clear sign that FFG Industries, itself recently acquired by Nautic Partners from the Jordan company, is aiming to consolidate its position in the competitive $11.6 billion (€8.6bn) global market for flavours and fragrances.
On completion of the offer ($1.55 a share), Technology Flavors & Fragrances will become a private company, merged into the wholly owned subsidiary of FFG Industries.
Swiss firm Givaudan continues to lead the industry with an estimated 13.5 per cent slice of the market in 2003, followed by US International Flavours & Fragrances that has an 11.7 per cent share. Firmenich, private equity-owned Symrise and ICI-owned flavours company Quest International are slated to have about 9.8, 9 and 6.1 per cent of the market respectively.
