Food ingredients group Frutarom has acquired British East Anglian Food Ingredients (EAFI) for US$4.8m.
The deal, Frutarom said today (25 January), will boost its presence and positioning in flavours, and in particular savoury ingredient solutions. It will also strengthen the firm’s technological capabilities.
EAFI’s turnover for the 12 months ending December 2010 is expected to total US$8.4m (GBP 5.4 million). The acquisition will be self-financed. Frutarom estimates that the deal will be completed within a number of weeks.
Frutarom president and CEO, Ori Yehudai said the acquisition will allow it to “widen its global customer base via a stronger entrance into the UK market”.
“Frutarom is the leading local flavour manufacturer in the UK, however until now our main focus in that market has been on the sweet spectrum of flavours,” said Yehudai. “The addition of EAFI rounds out the Frutarom portfolio, increasing the range of solutions that we can offer to food manufacturers in the UK. The global market for savoury flavours is growing as a result of trends in improved quality-of-life and changes in consumer behaviour.”
Yehudai said the company has identified the savoury sector as “an important growth engine” and is therefore investing in the development of products of high added value in its sites around the world.
EAFI develops, manufactures, and markets savoury taste solutions. Its product range includes flavours, seasoning compounds, and functional ingredients for the food industry with a specialisation in the sectors of convenience food, snacks, and processed meat and fish.
Yehudai added: “We are continuing to pursue additional strategic acquisitions and implementing our rapid growth strategy combining internal profitable growth with strategic acquisitions. This combination will allow us to again double Frutarom’s turnover within the next four years to US$1bn. Our sturdy capital structure, low net debt level and the strong cash flow we achieve, along with the support of leading banks, will allow us to continue executing acquisitions.”