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International Flavors & Fragrances to Expand on Ottens Buy - Analyst Blog

New York-based International Flavors & Fragrances Inc.IFF recently signed an agreement to acquire the Philadelphia, PA-based Henry H. Ottens Manufacturing Co., Inc. Financial terms of the transaction have not been disclosed.

As revealed, Ottens is a privately held company specializing in flavors technologies and 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 businesses 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.

Subject to regulatory approvals and satisfaction of customary closing conditions, International Flavors & Fragrances expects to close the Ottens acquisition in second-quarter 2015.

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 $6.00 for 2016, reflecting year-over-year growth of 8.5% and 8.8%, respectively.

With a market capitalization of $9.6 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 BioAmber Inc. BIOA . While both KMG Chemicals and OM Group sport a Zacks Rank #1 (Strong Buy), BioAmber carries a Zacks Rank #2 (Buy).

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INTL F & F (IFF): Free Stock Analysis Report

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BIOAMBER INC (BIOA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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