International Flavors & Fragrances’ $7.1 billion acquisition of Israeli flavors and ingredients company Frutarom will pay off in droves for the newly combined company, IFF Chairman and CEO Andreas Fibig told CNBC on Thursday.
“What is fantastic is that right now, we have the largest and broadest customer base in our industry and we have more than 30,000 customers. No one else has it,” he told Cramer in an interview.
“We are starting to take their natural solutions, like natural colors or like their antioxidants, to sell them into our customer base, and taking our technology, which we have shown to some of their managers already, to sell into their customer base,” he said of the integration. “We actually believe that’s the greatest value driver for us going forward.”
Even better, Frutarom gave IFF a good deal of local business, which Fibig said was an under-the-radar growth driver related to changing tastes region by region.
“You have seen, probably, in the last couple of quarters [that] in particular, the local and regional customers had a very good performance for us,” he told Cramer.
For more on how IFF is approaching the merger and handling rising raw material costs, click here to watch Fibig’s full interview.