Frutarom Industries (Frutarom), one of the world’s top 10 companies for flavours and specialty fine ingredients, announced end of January its 100% acquisition of the share capital of FoodBlenders for approximately US$2.4 million. The transaction was completed upon signing and is being independently financed. There is an additional sum expected to stand at about US$600 000, depending on the company’s performance.
The group’s president and CEO, Ori Yehudai comments: ‘This is an additional acquisition of activity in Frutarom’s core field of business that will enable us to offer our customers a broader set of solutions. This acquisition provides further reinforcement of our growing activity in the UK where Frutarom has a leading role in the field of flavours.
‘Frutarom considers the field of savoury flavours a vital strategic growth engine and invests heavily in developing unique innovative products with high added-value at its sites throughout the world. Acquiring FoodBlenders following the previous acquisitions in this segment is another step in establishing Frutarom’s leadership in this important area, and we intend to continue investing towards significantly expanding our savoury activity in other countries around the world, including through further acquisitions.’
Established in 1998, FoodBlenders develops, manufactures, and markets savoury solutions which mainly include spice and seasoning mixes, functional ingredients, marinades and sauces for the food industry, with particular emphasis on the convenience foods segment. In 2014 the company posted sales of approximately US$3 million with profit margins similar to those of Frutarom in the same area of activity. FoodBlenders has a site in England where it develops, manufactures and markets its products, located within close proximity of Frutarom’s Wellingborough site. It also has a wide customer base which includes British food and private label manufacturers.
FoodBlenders’ product line and technologies complement the product portfolios and activities of UK-based Savoury Flavours and EAFI which were acquired by Frutarom in 2012 and 2011 respectively, and which also specialise in savoury flavour solutions. The proximity to the Frutarom site at Wellingborough and the complementary line of products promise to generate synergies between FoodBlenders’ activity and Frutarom’s expanding savoury activity in the UK and throughout the world.
Frutarom will strive to fully exploit the cross-selling opportunities inherent in the acquisition and expand the product portfolio for its existing customer base. It will also work towards achieving the utmost operational and business efficiencies possible from the merger of FoodBlenders’ activities with its own UK activities based on Frutarom’s existing infrastructure and through optimising the use of its production facilities in this field.