07:39 AM EDT, 03/19/2024 (MT Newswires) -- (Updates the fifth paragraph with additional details about the deal, as well as other minor edits)

International Flavors & Fragrances ( IFF ) said Tuesday that it has agreed to sell its Pharma Solutions unit to France's Roquette for an enterprise value of up to $2.85 billion.

IFF and Roquette, a plant-based ingredients producer, expect to close the deal in H1 of next year, subject to customary closing conditions, including regulatory approvals.

The Pharma Solutions unit operates 10 research and development or production sites globally, with approximately 1,100 employees, and generated approximately $1 billion in revenue in 2023.

The enterprise value of the deal represents about 13 times the unit's earnings before interest, depreciation, taxes, and amortization, IFF said.

The cash or equity structure of the deal was not disclosed. IFF's chief executive Erik Fyrwald said the deal will help his firm reduce debt leverage to 3X or lower. "This also enables us to increase focus on the core drivers of long-term profitable growth," he said.

IFF shares were up about 1.5% in recent Tuesday's premarket activity.

Price: 84.69, Change: +0.88, Percent Change: +1.05