International Flavors & Fragrances(US:IFF)2021-02-19 21:02IFF and N&B Combination - The combination of IFF and N&B creates a global leader in taste, scent, and nutrition with approximately $11 billion in expected annual revenue and $2.5 billion in expected annual EBITDA[13] - The combined company is expected to have a pro-forma EBITDA margin of approximately 26%[19] - Approximately 48% of pro-forma sales are to small, medium, and private label customers[19] - Approximately 43% of pro-forma revenue comes from emerging markets[19] Market Position and Strategy - The strategic transformation aims to redefine IFF's market position and become a stronger organization[15] - The combined company will have a net sales of over $11 billion, which is approximately $4 billion or 60% higher than its nearest peer[19] - IFF is implementing resource prioritization and portfolio actions to maximize returns[40] Financial Performance and Outlook - 2021 pro-forma financial guidance assumes full 12 months of IFF and N&B, with sales of approximately $11.5 billion and adjusted EBITDA of approximately $23.2%[42] - The company expects to generate approximately $50 million EBITDA contribution in 2021 from realized savings[37] - IFF is targeting $300 million in cost synergies[44] R&D and Innovation - The combined company will have an industry-leading R&D investment, with an annual budget 1.5x the size of peers[19] - IFF has over 12,000 total patents granted and filed[27]