Israel’s Frutarom was acquired by IFF last year in a deal worth $7.1 billion.
Frutarom has acquired 100% of the shares of ingredients company Israeli Biotechnology Research (IBR) for $21 million.
The deal to purchase the Israeli company was carried out through a subsidiary of Frutarom.
Established in 1995, IBR researches, develops, manufactures and markets innovative and proprietary natural active ingredients for the cosmetics and dietary supplements industries.
IBR has research and development laboratories and a production facility in the town of Yavne in Israel, and it employs around 30 people.
Frutarom drew attention to IBR’s broad customer base in the US, Europe and Asia, which are said to include “some of the world’s leading cosmetic and personal care companies”.
IBR’s activity will be joining Frutarom’s existing work in the fields of algae growth and active ingredients extraction.
The deal follows on from a series of acquisitions that Frutarom carried out last year, including flavour companies Mighty for $11.9 million and Enzymotec for $210 million.
CEO Ori Yehudai told FoodBev that the company has around 1,200 small and medium-sized businesses – including 800 in flavours and 400 in natural ingredients – it has identified as acquisition targets through its pursuit of growth. The business is aiming to grow sales from $1.15 billion in 2016 to $2 billion in 2020.
Yehudai said: “If you look back into the Frutarom journey which I’ve followed over the last 31 years, since Frutarom was a $3 million company, $10 million in 1990, $80 million in 2000 and $450 million in 2010… our run-rate today is around $1.3 billion, so Frutarom came from a position where we didn’t really have presence in most of the geographies and countries where we are operating now.”
© FoodBev Media Ltd 2019
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