Frutarom Industries has acquired the flavours and natural food colours division of Peruvian company Montana SA for a cash payment of $5.82m and the assumption of debt.
The purchase price reflects a multiple of seven times 2013 Ebitda.
In addition to the Peruvian operations, Frutarom will also acquire, for no further consideration, the Montana Food operations in Chile. Montana Food has assets worth $24.8m.
Montana Food is a division of Montana SA which was founded in 1964 and has grown into one of South America’s leading companies in the field of flavours and natural food colours. Its customers include some of the world’s leading global food, beverages and flavour companies as well as manufacturers based locally in South America and Central America.
Sales of flavours and natural food colours, which constitute Montana Food’s core activity, reached $29.5m in 2013 with operating profit levels in line with those of Frutarom’s flavours division with which it will be combined.
This acquisition makes Frutarom the only global player in its industry with a sizeable production site in Peru as well as one of the top R&D, sales and marketing, and distribution infrastructures in the region.
Bringing along their vast experience, the general managers at Montana Food in Peru and Chile and its business operations managers, who have been successfully running the business to date, will continue in their managerial roles and will contribute considerably to strengthening Frutarom’s positioning in the region.
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