International Flavors & Fragrances of New York will acquire Frutarom of Haifa in a cash-and-stock transaction valued at approximately $7.1 billion, including the assumption of Frutarom’s net debt, the companies announced today.

The combined company is expected to have approximately $5.3 billion of revenue in 2018.

Following the close of the transaction in six to nine months, Frutarom President and CEO Ori Yehudai will serve as a strategic adviser to Andreas Fibig, IFF chairman and CEO. IFF will remain headquartered in New York City and will maintain a presence in Israel. IFF’s stock at closing will be listed on the New York Stock Exchange (NYSE) and the Tel Aviv Stock Exchange (TASE).

“Frutarom has had a fascinating journey of accelerated growth, far above our industry benchmarks through our investment in unique technologies and focus on natural products in the growing world of health and taste. Today, we are extremely excited to combine Frutarom with IFF and together create global leadership in natural taste, scent and nutrition,” said Yehudai.

Frutarom, a fast-growing flavors, savory solutions and natural ingredients company, has production and development centers on six continents, marketing 70,000 products to more than mainly 30,000 mid-size customers in more than 150 countries. Natural products drive more than 75 percent of its sales, which were expected to exceed $1.6 billion in 2018.

“Frutarom has an extremely attractive product portfolio, including broad expertise in naturals and diverse adjacencies with capabilities beyond our core taste and scent businesses,” said Fibig.

“This transaction represents a major milestone for Frutarom and opens the door to a new chapter of growth and shareholder value creation,” said John Farber, Frutarom chairman of the board and chairman of ICC Industries, Frutarom’s largest shareholder. “I am pleased to support this historic combination of two world-class companies and look forward to the next chapter of the IFF and Frutarom story.”