Israel’s Frutarom was acquired by IFF last year in a deal worth $7.1 billion.
Frutarom has bought a 51% stake in Brazilian savoury solutions producer Bremil Indústria for $31 million as it aims to profit from the growing global market for savoury flavours.
The deal continues Frutarom’s growth through acquisition strategy. It said it sees “great strategic importance” for rapid growth in the savoury flavours sector, with changing consumer habits leading to increased demand for processed and convenience foods.
Over the 12 months to October 2017, Bremil had revenue of $47 million. It was established in 1987 and focuses on convenience foods, prepared food and processed meats.
The company employs about 250 people, serves around 450 customers in Brazil and other South American countries, with a substantial presence among meat producers.
It has two production sites, in southern and central Brazil, with significant excess production capacity, which Frutarom intends to utilize towards raising output and growth in Brazil and neighbouring countries. Bremil provides functional solutions which include seasoning blends, marinades, flavours, coatings, texture solutions, and solutions for food protection.
Frutarom CEO Ori Yehudai said: “The acquisition of Bremil is the continuation of the implementation of Frutarom Group’s rapid profitable growth strategy and the realisation of its vision to be the preferred partner for tasty and healthy success.
“This is an important strategic acquisition which enables Frutarom to make an additional major leap forward in strengthening its global leadership in savoury solutions as well as substantially reinforcing our position in the growing Brazilian market in particular and in Latin America in general.
“The Brazilian market is the largest and key market in Latin American and Bremil holds a leading position in the savoury solutions market based on experience, knowhow, longstanding tradition and innovative technology.”
The deal includes an option for the purchase of the balance of shares of Bremil to take effect starting five years from the date of the transaction’s completion at a price based on Bremil’s business performance during that period.
The transaction, which is the latest in a series of Frutarom acquisition’s this year, is expected to be completed during the first few months of 2018.
© FoodBev Media Ltd 2019