NEW YORK — International Flavors & Fragrances Inc. has agreed to acquire David Michael & Co., Inc., a privately held company known for its vanilla expertise, strength in the dairy and beverage categories, and relationships with middle-market customers, according to I.F.F.
Existing resources will fund the transaction, which is expected to add about $85 million in revenue in 2017, I.F.F. said when announcing the deal Sept. 13. Financial terms of the transaction were not disclosed. Based in Philadelphia, David Michael & Co. was founded in 1896.
|Andreas Fibig, chairman and c.e.o. of I.F.F.|
“This bolt-on acquisition of David Michael is another important milestone in I.F.F.’s Vision 2020 business strategy, helping us to win where we compete in the world’s largest flavors market as we look to further accelerate growth,” said Andreas Fibig, chairman and chief executive officer of New York-based I.F.F. “I.F.F. and David Michael share a strong commitment to innovation, rich histories and a passion for our customers, making them a great addition to our organization.”
Last year I.F.F. acquired the Henry H. Ottens Manufacturing Co., Inc., a Philadelphia-based company known for flavors technologies and a portfolio of U.S.-based accounts.
|Matthias Haeni, group president of flavors for I.F.F.|
“For three generations, David Michael has been a vital player in the industry, building an outstanding portfolio of capabilities and customer relationships,” said Matthias Haeni, group president of flavors for I.F.F. “Merging and leveraging the strengths of both IFF-Ottens Flavors (acquired in 2015) and David Michael, we look to further reinforce our differentiated service model in the U.S. for middle-market customers, focused on innovation, agility and enhanced collaboration.”A partnership between Herman Hertz, who operated a bar in Atlantic City, N.J., and David Michael, a salesman for the Fleer chewing gum company of Philadelphia, created David Michael & Co. After Mr. Hertz died, Mr. Michael asked Eli and Robert Rosenbaum, who were brothers, and Walter M. Rosskam to join the management team. When Mr. Michael died in 1935, ownership of the company passed on to the Rosenbaum brothers and Mr. Rosskam. The third generations of the Rosenbaum and Rosskam families today control the company, which employs more than 250 people.