HAIFA, Israel, April 23, 2007 /PRNewswire-FirstCall via COMTEX/ -- Frutarom Industries Ltd. (UK:FRUT) announced today that it has signed an agreement to acquire through its subsidiary, Frutarom (UK) Ltd., 100% of the share capital in the British company Jupiter Flavours Limited ("Jupiter"), which develops, produces and markets flavors. In consideration, Frutarom made a cash payment of USD 2.8 million. The acquisition agreement also determines a deferred payment of up to USD 600,000 based on the future results Jupiter is expected to achieve. Jupiter showed high growth rates over the past few years and its sales volume for the 12 months period preceding the acquisition was approximately USD 2 million.
The acquired activity is synergistic with Frutarom's activity in Britain and is expected to expand Frutarom's product offering to its customers, as well as adding new leading customers to Frutarom's existing customer base in Britain.
The acquisition of Jupiter joins Frutarom's acquisition in March 2007 of the British company, Belmay, and additional acquisitions made by Frutarom in recent years. This acquisition will contribute to strengthening Frutarom's activity in Britain and to its position as the leading flavors producer in the British market. Frutarom intends to integrate the acquired activity with its own activity in the British market in order to achieve the greatest possible operation efficiency and savings, and estimates that this will not require additional resources.
This acquisition is an additional step in the implementation of the rapid growth strategy implemented by Frutarom in recent years, combining organic growth in core activities (at rates higher than the average for the industry in which Frutarom operates) with strategic acquisitions of activities and knowhow in Frutarom's main fields of operation and in strategic geographical targets.
Frutarom is a multinational company operating in the global flavor extracts and fine ingredients markets. Frutarom has significant manufacturing and development centers on three continents and markets its products to more than 5000 customers in over 120 countries on 5 continents. Frutarom's products are intended for the food and beverage, flavor and fragrance, pharmaceutical, nutraceutical, health food, functional food, food supplement and cosmetic industries.
Frutarom operates two main divisions:
- The Flavors Division develops, manufactures and markets flavor compounds and food systems.
- The Fine Ingredients Division develops, manufactures and markets natural flavor extracts, natural functional food ingredients, natural pharma/nutraceutical extracts, essential oils and unique citrus products and aromatic chemicals.
Frutarom's products are produced at its facilities in the US, the UK, Switzerland, Germany, Israel, Denmark, China, and Turkey. The company's global marketing network includes marketing departments in Israel, the US, the UK, Switzerland, Germany, Belgium, Holland, Denmark, France, Hungary, Romania, Russia, the Ukraine, Kazakhstan, Belarus, Turkey, Brazil, Mexico, China, Japan, Hong Kong, India, and Indonesia. The Company also has agents and local distributors throughout the world. Frutarom employs some 1,150 employees worldwide.