...March 19, 2024 This report does not constitute a rating action. CHICAGO (S&P Global Ratings) March 19, 2024--S&P Global Ratings today said it views International Flavors & Fragrances Inc.'s (IFF; ###-/Negative/A-3) announcement that it entered into an agreement to sell its Pharma Solutions business to Roquette Freres S.A. for up to $2.85 billion as credit positive. The company expects to use the proceeds from this divestiture to repay debt. We view the announcement as further supporting our current ratings because the sale will accelerate IFF's deleveraging and reaffirms management's commitment to its stated 3x leverage target. The announcement follows the company's decision to cut its dividend by about 50% and precedes the closing of the divestiture of its Lucas Meyers Cosmetics (LMC) business, which we expect will occur in the near term. After incorporating the net proceeds from the Pharma Solutions and LMC divestitures, we estimate IFF's pro forma leverage will improve to the low-4x...
