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LONDON, 16 February 2023 - Exponent today announced that it has agreed to acquire IFF’s Flavour Specialty Ingredients division (“FSI” or “the Business”), a global leader in the base aromas market.

Headquartered in the UK, FSI is a leading supplier of high-value, specialty base aromas with a broad offering of Natural and Aroma Chemical products, key inputs to the global Flavour and Fragrance industry. FSI’s differentiated portfolio of products positions it as the partner of choice to a diversified customer base, predominantly serving Food and Beverage end markets.

The proposed sale includes four dedicated manufacturing and distribution facilities in the UK, US and China, as well as additional distribution centres in Mexico, Brazil and Hong Kong. It serves more than 970 clients across Europe, North America and Asia and generates over $100 million in revenue.

This transaction underlines Exponent’s specialist expertise in corporate carve outs. The acquisition also builds on the firm’s strong track record of investing in market leading Food & Beverage businesses, including Quorn Foods, the UK’s leading meat-alternative business and Meadow, the UK’s leading dairy ingredients business. Exponent will support the Company’s ambitions to grow significantly, both organically and through acquisitions. Its global operations and broad capabilities mean it is well-positioned to capitalise on growth in the multi-billion-dollar base aroma market, driven by global megatrends such as the demand for natural flavour solutions.

Commenting on the acquisition, Mark Taylor, Partner at Exponent, said: “We are delighted that we have agreed to acquire the FSI division from IFF. FSI is a global leader in the base aromas market, with a strong customer base and a differentiated portfolio of Natural and Aroma Chemical products. This strong market position is founded on deep technical expertise and a reputation for supplying products of the highest quality. With further investment and support as an independent business, we see a significant opportunity to accelerate FSI’s growth.”

The proposed transaction is subject to customary regulatory approvals and is expected to complete before the end of Q3 2023.