International Flavors & Fragrances Inc. agreed to buy Israel-based rival Frutarom Industries Ltd. in a $6.4 billion cash-and-stock deal that gives one of the world’s largest flavoring makers a foothold in natural foods.
IFF shares were down 11% midafternoon Monday. “The deal is expensive and risky,” said Brett Hundley, a food analyst with The Vertical Group. There’s potential for significant cost savings and improved sales, he said, “but IFF has a lot of work ahead of it.”
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