DuPont has announced its Nutrition & Biosciences business is merging with the New York-based International Flavors and Fragrances or IFF.
The definitive agreement values the combined company at a massive $45.4 billion.
IFF works internationally with companies on scents and tastes, while DuPont N&B works in food, beverage and dietary supplements.
Under the deal’s terms, DuPont will retain a slightly larger portion of the combined shares--a little more than 55%--and IFF will pay DuPont $7.3 billion.
On its website, DuPont says the combined portfolios of the two companies will create a leader in Taste, Texture, Scent, Nutrition, Enzymes, Cultures, Soy Proteins and Probiotics.
The company estimates a combined revenue of $11 billion for fiscal year 2019.
The deal was approved unanimously by both boards. IFF CEO Andreas Fibig will chair the new 13-member board of directors—which will include 7 from IFF and 6 from DuPont until 2022, when there will be 6 directors from each company.
It's uncertain what impact the deal will have on DuPont's Delaware workforce, but the state's senior Senator Tom Carper said in a statement he believes a positive outcome is possible.
"I am hopeful that the work our Governor and Congressional Delegation have done to encourage DuPont to keep its businesses in the First State will continue to resonate," said Carper in his statement. "There is potential here as DuPont develops its plan to invest the $7 billion cash payout into its company, and I remain cautiously optimistic that this will bring good things to the company and its presence in Delaware."
