Photo Credit: Pixabay / Ogutier

The Israeli flavors and ingredients maker Frutarom Industries has been purchased by the U.S.-based giant, International Flavors & Fragrances Inc. For $7.1 billion in cash and stocks, Reuters reported on Monday.

IFF rises to compete for first place in the industry with Geneva-based market leader Givaudan as a result of the deal, the second-largest takeover of an Israeli company after the $15 billion sale of Mobileye to Intel.

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“By combining our deep R&D expertise with Frutarom’s, we are offering our customers a broader range of solutions and accelerating our growth strategy,” IFF CEO Andreas Fibig said in a statement.

The deal, which closed on May 6, saw New York-based IFF pay 67 percent of the purchase price in cash and 33 percent in stock for the company – an 11 percent premium – and will assume its net debt.

Shareholders of the Haifa-based firm are to receive the equivalent of $106.25 per share, $71.19 in cash and 0.249 of a share of IFF for every share in the company, according to a joint statement from the two companies.

The deal has been unanimously approved by the boards of both companies, and the price of Frutarom shares has jumped by as much as 6.7 percent.

Frutarom is focused primarily on natural products, one of the fastest-growing sectors in the personal care and food industries.

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Hana Levi Julian is a Middle East news analyst with a degree in Mass Communication and Journalism from Southern Connecticut State University. A past columnist with The Jewish Press and senior editor at Arutz 7, Ms. Julian has written for Babble.com, Chabad.org and other media outlets, in addition to her years working in broadcast journalism.