Symrise has signed a purchase agreement with the owners of ADF/IDF, a leading natural nutrition ingredient provider for petfood, regarding the acquisition of their business. ADF/IDF a pioneer in clean label meat and egg-based taste and nutrition ingredients.
With the acquisition, Symrise aims to broaden its activities in the fast growing petfood business and to expand its position in the attractive food nutrition market. The purchase price amounting to US $900 million will be financed by debt and equity. The acquisition is expected to be fully EPS accretive from the first year after closing. With its approximately 470 employees, ADF/IDF generated sales of US $220 million and an EBITDA margin of 23 percent. The transaction is subject to satisfaction of customary closing conditions.
“The strategic acquisition of ADF/IDF perfectly delivers on our strategy to expand in fast growing, high margin business areas. The complementary offering will further diversify our Diana portfolio in petfood and nutrition. The acquisition of the leading provider of natural petfood nutrition ingredients is a further breakthrough for Symrise into the petfood nutrition market. With our expertise in petfood palatability and competence in nutrition solutions, we will create an integrated partner for our petfood clients,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “Through this acquisition, we will also broaden our global presence especially in the USA – a strategically important growth market for us – and strength our customer base.”
ADF/IDF (American Dehydrated Foods/International Dehydrated Foods) was founded in 1978 and is a specialised producer of sustainable meat and egg-based nutrition ingredients. Headquartered in Springfield, MO, the Company is a partner of choice for clients in the petfood, food and nutrition industries, offering a wide range of natural and clean label product solutions.
In petfood applications, the company has become a leading natural ingredient provider, offering taste and nutrition solutions as well as functional ingredients. With its highly recognized customer orientation, ADF/IDF has established a diverse client base consisting of many long-term, close relationships with global and regional petfood and food companies.
The combination of ADF/IDF and the Symrise Nutrition division Diana will create a leading global player in meat and egg-based protein specialties with focus on all natural and sustainable solutions.
Highly complementary acquisition offers cross-selling potential
With the acquisition, Symrise leverages its leadership position in petfood, extending its palatability know-how towards the Premium Nutrition segment. The ADF/IDF’s brand IsoNova offers petfood solutions using egg protein specialties. It develops animal health, functional, and nutritional products.
Thereby, Symrise becomes a unique player for petfood and nutrition. With ADF/IDF`s expertise in clean label chicken and egg-based nutrition ingredients Symrise will form a fully integrated supplier of protein specialty ingredients. Customers will benefit from a highly efficient supply chain and natural quality products.
The combination of ADF/IDF and Symrise will furthermore result in an enhanced customer platform and strengthened international footprint. Symrise will reinforce partnerships with key multinational players as well as fast-growing regional brands in the United States, one of its key growth markets. In return, ADF/IDF will benefit from Symrise”s resources and expertise outside the American market. The acquisition offers also cross-selling potential to accelerate long-term profitable growth, especially in the attractive application area of petfood.
Symrise and ADF/IDF will benefit from joint R&D capabilities and competences. Both companies share a strong reputation for investing in process and product innovation and the dedication to provide exceptional customer value.
William Darr, founder of ADF/IDF, added: “We are delighted to have found in Symrise a new strong owner for our company, they share the same values and the same mindset on the further development of the business. In the starting phase of our company, we already worked very closely with Diana, which is today leading Symrise”s nutrition activities.
ADF/IDF and Symrise have many things in common. We are both committed to high-quality natural products derived from sustainable resources. And we both drive innovation to develop solutions that best serve our customers” needs. Our company will benefit from Symrise”s scientific know-how to further improve our products. Also, Symrise”s wide global presence and broad customer base will allow ADF/IDF to expand its business faster.”
For more information on Symrise visit their website, HERE.
