Israel’s Frutarom was acquired by IFF last year in a deal worth $7.1 billion.
Israel’s Frutarom has continued its series of acquisitions and growth with the purchase of 80% of SDFLC Brasil Indústria E Comércio (SDFLC) for BRL 110 million ($33 million).
The agreement includes an option for the purchase of the balance of shares beginning about two and a half years after the date of completion of the transaction at a price based on SDFLC’s business performance during this period.
SDFLC, a producer of taste solutions for ice creams and desserts, had sales over the 12 month period ending May 2017 of approximately BRL 72 million ($22 million) after achieving average annual growth of 17% over the past five years.
The company was founded in 2001 in the city of Sete Lagoas and has a leading position in the market for taste solutions for ice creams and desserts in Brazil based on longstanding Italian tradition and technological specialisation. It provides its customers support in product R&D built on a portfolio of solutions for ice creams and desserts based on natural ingredients.
In light of its growth, SDFLC is in the process of building a new site that will include state-of-the-art R&D laboratories and an advanced automatic production platform to allow for doubling its production output without any additional workforce. Construction of the new site will be completed in 2018 at an investment of around $6 million.
The acquisition allows Frutarom continued expansion of its global activity in natural sweet taste solutions along with the expansion and deepening of its market share in Brazil and Latin America.
Frutarom Group CEO Ori Yehudai said: “The acquisition of SDFLC 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 that provides Frutarom with significant reinforcement of its position in the Brazilian market, which is Latin America’s foremost market.
“SDFLC has a leading position in Brazil’s market of sweet taste solutions for ice creams and desserts which is based on longstanding tradition and know-how and cutting-edge technology, and we intend to continue expanding its activity by means of Frutarom’s global support and the exploiting of the many cross-selling opportunities, both by offering Frutarom’s broad portfolio of solutions to SDFLC customers in Brazil and by expanding SDFLC’s activities into countries in the region where Frutarom already has a sales and marketing infrastructure in place.
“Completion of construction on the modern new site will permit the doubling of SDFLC’s production capacity while supporting the further rapid growth in activity and exploitation of the abundant operational synergies with our existing activity in Brazil.”
© FoodBev Media Ltd 2019
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