Israeli flavours and ingredients group Frutarom has acquired the assets and business of UK company Oxford Chemicals.

The US$12m acquisition of the speciality ingredients company will be financed through a long-term bank loan and paid in full in cash at completion, the company said in a statement today (5 January).

Frutatom said Oxford Chemicals' business is "highly synergetic" with its own global fine ingredients division, which has production facilities in the UK, US, Switzerland and Israel.

In 2007, Oxford Chemicals generated sales of around $14m and operating profit of $900,000. The company's operating profit for 2008 is expected to increase by more than 50% to over $1.45m.

Frutarom president and CEO Ori Yehudai said: "The acquisition of Oxford continues the implementation of Frutarom's rapid growth strategy, and further supports Frutarom's position, which is already one of the ten largest companies in the world in the flavours' field."

Frutarom said it expects to close the deal in a few weeks.