With its staff of 38, Acatris Health has achieved sales of $14.7 million (11.6 million) in 2005 with margins similar to that of Frutarom's Fine Ingredients Division. Frutarom expects that Acatris Health's activities will grow in the coming years at an above-industry rate largely due to increased sales of its unique, branded proprietary patented products that enjoy above average profitability.
According to Frutarom's president and CEO, Ori Yehudai, "Acquiring Acatris Health is an important strategic acquisition that represents another step in the implementation of Frutarom's rapid growth strategy and the fulfillment of its vision To be the Preferred Partner for Tasty and Healthy Success. The acquisition of Acatris Health will significantly strengthen our unique, natural product portfolio that we offer our customers, particularly in the dietary supplement and functional food markets that are enjoying rapid growth, and strengthen Frutarom's leadership position in these markets."
Mr. Piest, CEO of Royal Schouten Group ("RSG"), which was represented by JBR Corporate Finance in the sale process of Acatris Health, commented that RSG and Acatris Health's management are pleased with the sale of Acatris Health to Frutarom, which RSG sees as a leading global player in the industry. "Our longstanding and special relationship with the Frutarom Group, with whom we have cooperated for years with great success, together with Frutarom's advantageous global position, assures that the integration of the two companies' activities will contribute both to Acatris Health's devoted and superb staff and customers, as well as those of Frutarom."
According to the agreement, Acatris Health's activity will be merged within the global structure of Frutarom's Fine Ingredients Division, and also be combined with the activity of Flachsmann Switzerland, acquired by Frutarom in 2003. Acatris Health's experienced and effective management, R&D, marketing and sales teams will contribute significantly to the Frutarom Group's existing human resources, and Frutarom's R&D community will benefit from significant new expertise in the arena of natural products with the addition of Acatris Health's R&D capabilities and its pipeline of future products and applications. Acatris Health's and Frutarom's combined sales and marketing network will promote Acatris Health's unique products in geographies such as Asia where they had a limited presence up until now. Manufacturing equipment that was acquired as part of the acquisition will be integrated into Frutarom's manufacturing facilities, and Acatris Health's logistics center in Belgium, also acquired as part of the transaction, will be integrated as well strengthening Frutarom's European supply chain.