Israeli flavours and ingredients company Frutarom Industries has pressed ahead with its rapid growth strategy, acquiring Florida-based citrus ingredient solutions provider Scandia in a deal worth $6m.
Frutarom said that Scandia’s extensive knowledge of citrus flavours, coupled with its research and development and marketing capabilities, will allow Frutarom to further strengthen its centre of excellence in Florida in the field of citrus and to provide its customers with innovative added-value products and solutions that meet their needs.
The deal follows the company’s acquisition of CitraSource, which also specialises in citrus and operates a production facility not far from that of Scandia, last year.
Frutarom will work towards fully capitalising on the many cross-selling opportunities arising from the acquisition along with combining all of Scandia’s activity at its existing site in Florida, while attaining maximal savings and efficiency, the firm continued.
Frutarom president and CEO Ori Yehudai said: “Frutarom got its start in the cultivation and extracting of citrus in Israel. Today, 82 years after Frutarom was founded, citrus still makes up a large and important part of our activity and constitutes one of our competitive advantages. The improved back integration brought about with the acquisition of CitraSource last year will now be further reinforced with the acquisition of Scandia and help us continue establishing our position as a global leader in the citrus market while enhancing our offerings of innovative products and the service we provide our customers.
“The acquisition of Scandia provides Frutarom advanced R&D capabilities, unique technology, global purchasing capabilities with emphasis on North, Central and South America, and a leading and experienced management team, and it further enhances our presence in Florida – one of the worldwide centres for citrus. The acquisition represents another milestone and is the realisation of the strategy for both expanding in the United States and broadening our portfolio of natural products in response to market trends and the needs of our customers in the flavours and food and beverages market.
“The acquisition of Scandia joins the eight acquisitions completed since the beginning of the year and supports the continuing positioning of Frutarom as a leading player in the global market for flavours and speciality fine ingredients. We will continue implementing our rapid and profitable growth strategy, and our strong pipeline of acquisitions will permit the continued realisation and execution of further strategic acquisitions of companies and operations in our fields of activity.”
© FoodBev Media Ltd 2021
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