Frutarom has acquired a 70% stake in Argentinian flavours and fragrances firm Meroar for $11.2 million, as part of a strategy to grow its presence in Latin America.
Buenos Aires-based Meroar develops flavours for clients in the beverage, sweets and baked goods industries in Argentina and is one of the largest companies in the flavours segment in the Argentinian market.
This purchase strengthens Frutarom’s position in the Latin American market, and represents Frutarom’s second acquisition in Latin America in the last few months, following the purchase of a 51% stake in Brazil-based Bremil Indústria for $31 million in December 2017.
Meroar’s founders will retain their management positions and become part of Frutarom’s management structure in Latin America. They will also remain shareholders and hold the remaining 30% stake in Meroar.
Mr. Ori Yehudai, president and CEO of Frutarom Group, said: “The Meroar acquisition constitutes a significant first entry for Frutarom into Argentina, and is yet another strategic acquisition of an activity in Frutarom’s core field which will enable us to offer our customers a broader range of innovative solutions, and an important step in implementing Frutarom’s strategic plan to develop a worldwide business of Fragrances, particularly in emerging markets with high growth rates.
“Meroar has extensive know-how acquired over the years and unique flavours and fragrance solutions based on its founders’ extensive experience.
“Those will contribute to building up our position in these activities, with an emphasis on Latin America, in combination with our activity in the fragrance industry in Peru, through Montana, which will enable some very interesting synergies and cross-selling opportunities, in Argentina, Peru, and other Latin American countries.
“In addition, Frutarom’s leading position in the field of flavor solutions in Latin America will enable us to significantly enhance Meroar’s flavor solution’s activity, while capitalising on the significant cross-selling potential, by offering a broad range of Frutarom products and technologies to Meroar’s customers in Argentina, a country where our presence so far has not been substantial and we see a rapid growth horizon for Frutarom there.”
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