US/ISRAEL: Frutarom acquires Flavor Systems International
Frutarom has bought Flavor Systems International
Frutarom, the Israeli flavours and ingredients company, is set to buy US-based Flavor Systems International.
The sale is expected to be finalised in the next few weeks and Frutarom will initially pay US$35.3m, although the final price of the transaction could range from US$29.3m to US$45.3m as it is tied to future earnings.
Frutarom will also pay US$6.5m for real-estate assets owned by related companies.
Cincinnati-based Flavor Systems focuses on the development, production and marketing of sweet and savoury flavours to the food and beverage market and employs approximately 50 staff.
Frutarom CEO and president Ori Yehudai said today (13 September): "I am glad to announce the important acquisition of the US company, Flavor Systems, which considerably expands our activities in USA, which is the world's largest flavour market and supports Frutarom's future strengthening and positioning in the global market. We continue the successful implementation of our rapid growth strategy, which combines profitable internal growth in the core segments with strategic acquisitions.
Frutarom has made a number of acquisitions in 2011, including Aromco, British East Anglian Food Ingredients and Norwegian manufacturer Rieber & Son's industrial savour spices unit.
Frutarom is set to make its third acquisition of 2012 after signing a deal to buy Brazilian flavours firm Mylner....
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