20 Mar 2024 --- Roquette plans to acquire International Flavors & Fragrances (IFF) Pharma Solutions for an enterprise value of up to €2.85 billion (US$3.09 billion). With the acquisition set to close in the first half of 2025, the plant-based ingredient and pharmaceutical excipients supplier aims to reinforce its position in the pharmaceutical industry.
Closing the transaction is subject to regulatory clearance and satisfaction of other customary closing conditions.
IFF Pharma Solutions develops and manufactures pharmaceutical excipients and includes its Global Specialty Solutions business supporting industrial and methyl cellulosic food applications.
“After last year’s acquisition of Qualicaps, today’s announcement is a decisive step in our journey to reinforce our position in the health and nutrition markets,” comments Pierre Courduroux, CEO of Roquette.
“Combining our excipients’ expertise with IFF Pharma Solutions is a fantastic opportunity to become a global specialist in drug delivery and oral dosage solutions. This responds to the needs of customers and patients looking for continuously better treatments. We look forward to welcoming IFF Pharma Solutions and jointly building the next chapter of our company’s growth history.”
Excipients market
The acquisition will expand Roquette’s pharma product range and accelerate its growth, focusing its portfolio around the two pillars of health and nutrition. It will allow Roquette to strengthen its position in the excipients market and enhance its US footprint.
According to IFF, the business sold to Roquette primarily consists of businesses within the Pharma Solutions division, with some adjustments to the perimeter of the transaction designed to align customers, businesses and the manufacturing footprint.
IFF’s pharmaceutical division produces excipients for oral dosage solutions, with around US$1 billion in revenues. It holds a global client base of pharmaceutical, food and nutraceutical companies, has ten R&D and production sites globally and a staff of 1,100.
Last year, the division launched a vegan softgel capsule for nutraceuticals at Vitafoods Europe. The ready-to-use pectin-based premix, Verdigel SC, allows manufacturers to offer carrageenan-free products.
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At CPhI 2023, we talked to Christine Mya-San of Roquette about the company’s acquisition of Qualicaps.“We are pleased to reach an agreement with Roquette that will support Pharma Solutions’ next chapter of growth as a trusted partner for the pharmaceutical industry,” adds Erik Fyrwald, CEO of IFF.
“This represents a great opportunity for our team and customers. Roquette is the ideal strategic partner for IFF Pharma Solutions, with whom it has complementary portfolio and innovation capabilities and with whom it shares a culture of operational excellence.”
Expansion plans
The acquisition of IFF Pharma Solutions further expands Roquette’s excipient presence after purchasing the Japanese hard capsule producer Qualicaps in 2023.
Last year, Roquette added three excipient grades for moisture-sensitive active ingredients to its product range, aiming to provide pharmaceutical manufacturers with the tools to optimize drug delivery.
Meanwhile, Roquette also launched an innovation center in Lestrem, France, to foster food innovation and accelerate the launch of novel products.
Edited by Jolanda van Hal
