Givaudan has signed an agreement with UK-based Imperial Chemical Industries PLC, to acquire its fragrance and flavor business, Quest International for approximately $1.54 billion. According to company officials, the Quest acquisition will extend Givaudan’s leadership position in all strategic segments of the fragrance and flavor industry. Integrating Quest’s unique set of talent, creativity, products and technology will result in a platform to serve customers and create a potential for accelerated growth. Givaudan expects to achieve annual synergies of $120 million with full benefits to be realized after year three. The acquisition will be financed by debt and the issuance of up to $800 million in equity.