Flavour and ingredients producer Frutarom has expanded its presence in the growing Indian and African marketplaces, following the acquisition of a 60% stake in India-based Sonarome for $17.2m.
Sonarome generated revenues of $12m during 2014, and the cash payment represents a valuation of $28.6m. The purchase agreement includes an option for Frutarom to acquire the remaining balance of shares starting two years from now, at a price conditional to Sonarome’s business performance.
The acquisition is the fourth such deal involving Frutarom this year, as the Israeli firm continues to pursue its aggressive growth plans in markets such as Belgium and Spain.
Frutarom CEO and president Ori Yehudai said: “The acquisition of Sonarome is the continuation of the Frutarom Group’s implementation of its rapid growth strategy and realisation of its vision ‘to be the preferred partner for tasty and healthy success’. Frutarom has set itself the goal of expanding its activity in the emerging high-growth markets of India and Africa, both through internal growth and by means of acquisitions. The acquisition of Sonarome, one of India’s leading domestic companies in the field of flavours and fragrances, is another key step towards attaining this goal. Combined with Sonarome’s activity, Frutarom will continue to develop and deepen its presence in the important markets of India and Africa, capitalise on Sonarome’s R&D and sales and marketing platform and integrate it with Frutarom’s global R&D and sales and marketing infrastructure in order to leverage and realise the many cross-selling opportunities arising from this acquisition. We will also work towards leveraging Sonarome’s production and supply chain capabilities to accelerate our growth in India.”
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