Israeli flavours and ingredients producer Frutarom Industries has continued to implement its strategy for rapid growth with the acquisition of American flavours company Foote & Jenks in a deal worth approximately $4m.
The New Jersey-based company develops, manufactures and markets flavour extracts for the food, beverage and pharmaceutical industries – and generated sales of roughly $2.9m last year.
Frutarom said that it would work on capitalising the cross-selling opportunities that arose from the acquisition, expanding the product portfolio offered to the company’s existing customer base, and work towards achieving maximum commercial and operational efficiencies at Foote & Jenks in cooperation with other Frutarom USA production sites.
The acquisition is Frutarom’s eighth since the start of the year, as the Israeli firm seeks to pursue its aggressive growth plans. Earlier this month, the company acquired Australian fruit ingredients producer Taura for $70m – having already acquired Spanish extracts producer Ingrenat and Peruvian company Montana, as well as a majority stake in Indian flavours producer Sonarome, for a combined value of more than $30m.
Frutarom president and CEO Ori Yehudai said: “This is an acquisition of growing and profitable flavour activity, Frutarom’s most profitable core field. A major part of Foote & Jenks sales is to customers in the pharma industry who demand advanced solutions for masking the aftertaste of active ingredients contained in their products, as well as high quality, and conformance with strict regulatory requirements. Frutarom already operates in this area and views it as an attractive field of endeavour for itself which also provides a good fit with the activity of its specialty fine ingredients division that includes activity in active ingredients with added health value for the pharma and nutraceutical industries. We see significant synergies between Foote & Jenks activity and Frutarom’s flavours activity in the US, and we intend to leverage the cross-selling possibilities that this acquisition generates both by expanding the product portfolio and by broadening the customer base.
“We are continuing to implement our rapid and profitable growth strategy combining internal growth and strategic acquisitions. The acquisition of Foote & Jenks is the eighth acquisition we are completing this year and marks the continuation of carrying out our plan to expand our activity in the US market. We are working towards identifying and executing further strategic acquisitions of companies and operations in our fields of activity, with special focus on fast-growing markets and activities.”
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