International Flavors & Fragrances Inc. (NYSE: IFF) has announced that it has entered into a $450 million accelerated share repurchase program with Morgan Stanley. Under the accelerated buyback plan, IFF expects to repurchase 10% (or 8 million shares) of its currently outstanding stock, which are expected to be delivered to IFF on September 28, 2007.
Additional shares may be delivered to the Company by the second quarter of 2008. IFF is acquiring these shares under a previously announced $750 million share repurchase program that was approved by IFF’s Board of Directors on July 24, 2007.
IFF is a leading creator of flavors and fragrances by its own pen, but it is perhaps the leader that is one of the behind the scenes in fragrances and flavors. Its fragrances are used in soap, detergents, creams, perfumes, deodorants, candles, air fresheners and more; while its flavors are used in soft drinks, candies, baked goods, desserts, prepared foods, dietary foods, dairy products, drink powders, pharmaceuticals, snack foods, and alcoholic beverages.
The company’s market cap is just over $4 Billion, while it lists its total assets at $2.546 Billion and total liabilities as $1.552 Billion. If you back out intangible and goodwill from its books, the net tangible assets are $256 million after you back out all liabilities. Analysts are looking for 2007 EPS as $2.73 on $2.25 Billion revenues and 2008 as $3.07 EPS on $2.37 Billion in revenues. Shares closed Friday at $48.67, within the $38.86 to $54.09 trading range over the last 52-weeks.
Jon C. Ogg
September 17, 2007