Israeli flavors and natural specialty fine ingredients Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) announced today that it has signed an agreement for the purchase of 100% of the shares of the UK company Flavours and Essences (UK) Ltd. (F&E)approximately US$ 19.5 million (£ 15 million). There is also a mechanism for future consideration based on F&E’s future business performance over the period of three years from the purchase date. The transaction was completed upon signing and financed through bank debt. This is Frutarom's fifth acquisition this year.
According to F&E management reports, revenue for the 12 months ending in July 2017 was $ 17.4 million (approx. £ 13.7 million) and it registered an average annual rate of growth for the past five years of over 20%.
Based in Blackburn, F&E develops produces and markets flavors and natural colors. F&E’s founding owners and managers will continue contributing their experience towards continued rapid and profitable growth of the activity.
Frutarom president and CEO Ori Yehudai said, "This is another acquisition of activity in Frutarom’s core field which will enable us to offer our customers a wider portfolio of solutions. This acquisition is further reinforcement for our growing activity in the UK where Frutarom holds a leading position in flavors. Frutarom will drive at exploiting to the utmost the cross selling opportunities inherent in this acquisition and will work towards expanding the product portfolio to F&E’s existing customer base. In addition, Frutarom will take measures to achieve maximum commercial and operational efficiency from merging F&E’s activity with its own activity in the UK.”
He added, "The F&E acquisition is a continuation of the implementation of Frutarom’s rapid and profitable growth strategy and the realization of its vision 'to be the preferred partner for tasty and healthy success.' This is the fifth acquisition we have made this year after having acquired Unique Flavors in South Africa, the French flavors company René Laurent, the Vietnamese flavors company WFF, and acquiring SDFLC of Brazil with its flavor solutions for ice creams and desserts. Since 2015 we have already acquired 24 companies which have been integrated into our global activity and have been and will continue contributing to further growth in sales and improved profits and margins through maximal capitalization on the synergies they bring. We are working at identifying and executing further strategic acquisitions of companies and activities within the range of our operations."
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017