New York, N.Y.-based International Flavors&Fragrances Inc. (IFF) will acquire unrated Israeli ingredients company Frutarom in a cash and stock transaction valued at $7.1 billion, including the assumption of Frutarom's debt. The company intends to finance the transaction with a combination of debt and $2.2 billion in new equity, likely resulting in pro forma debt to EBITDA well over 4x, up from about 2.5x for the 12 months ended Dec. 31, 2018. We are placing the corporate credit rating and senior unsecured issue ratings on CreditWatch with negative implications pending regulatory approval and the completion of the company's planned equity offering. On May 7, 2018, S&P Global Ratings placed its corporate credit rating and senior unsecured issue ratings on
