Frutarom Industries has completed the acquisition of Belgian flavours company Taiga International for $2.9m.
The acquisition includes a small base of employees and a research, development and production facility 15 miles north of Brussels. Taiga, which has developed a broad network of customers across Europe and North America, generated revenues of almost $5m last year. The independently financed transaction led to Frutarom acquiring 100% of Taiga’s shares, and continues the Israel-based company’s aggressive growth strategy.
“Frutarom hopes to expand the company’s existing consumer base and to maximize the operational and commercial efficiency of the merger between Taiga and Frutarom’s services,” it said.
Last month, we reported that the company had acquired Spanish natural extracts producer Ingrenat in a deal worth approximately €7m, as it sought to “forge ahead in implementing our rapid growth strategy”.
Frutarom Group president and CEO Ori Yehudai said: “This is an acquisition of activity in the field of flavours, Frutarom’s core activity, which boasts high profitability margins. We see significant synergies between Taiga’s activity and Frutarom’s flavours activity in Europe and intend to leverage the cross-selling opportunities generated by this acquisition both by broadening the product portfolio and expanding the customer base.
“We are continuing to implement our rapid and profitable growth strategy which combines internal growth and strategic acquisitions. The acquisition of Taiga is the third acquisition we are performing this year, and follows the three acquisitions in 2014. Meanwhile, we are continuing to work towards identifying and carrying out further acquisitions of companies and operations in our fields of activity, placing particular focus on markets exhibiting high rates of growth.”
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