IFF To Sell Microbial Control Business Unit To Lanxess For About $1.3 Bln

(RTTNews) - International Flavors & Fragrances Inc. (IFF) said that it agreed to sell its Microbial Control business unit to Lanxess for about $1.3 billion.

The cash proceeds net of taxes and expenses will be primarily used to reduce outstanding debt, IFF said in a statement.

IFF Microbial Control employs around 270 people and operates two production facilities at its U.S. sites in St. Charles, Louisiana, and Institute, West Virginia.

Lanxess expects the transaction to be completed in the second quarter of 2022. It expects the deal to be earnings per share accretive already in the first fiscal year after closing.

Lanxess noted that it will finance the purchase price with debt capital and has secured respective bridge financing for this purpose.