Frutarom Industries Ltd continues its momentum of acquisitions and the implementation of its growth strategy with the announcement that it bought 100% of the shares of U.S.-based Grow Company Inc. for $20 million. The purchase agreement includes a mechanism for future consideration conditional on the company’s business performance during the year following the purchase date.

Frutarom also announced that it completed its purchase of 75% of the share capital of the Polish company AMCO Sp. z o.o. which specializes in unique savory flavor solutions.

Founded in 1977, Grow has accumulated many years of know-how and unique biotechnological production methods for producing natural nutritious ingredients with healthy qualities that are scientifically proven and backed up by clinical studies. These ingredients significantly improve the body’s absorption of vitamins, minerals and other nutrients. Among its customers are leading dietary supplement, natural remedy, functional foods, cosmetic and flavors companies, and Grow has displayed impressive growth rates surpassing those of the markets in which it operates.

Grow’s unique technology and products strengthen Frutarom’s technological infrastructure and its portfolio of natural solutions for the food and health sectors. Frutarom will work towards capitalizing on the many cross-selling opportunities arising from the acquisition and supporting the expansion of research, development and production of specialty natural solutions combining taste and health in response to consumer demand and the trends prevailing in the global food market calling for healthier and more natural food items.

Grow has an R&D and marketing center and efficient production site in New Jersey. The company’s owners, and foremost among them the CEO who as a renowned researcher in this field with many years of experience also serves as its chief science officer, will join Frutarom’s managerial ranks in its Specialty Fine Ingredients Division.

Ori Yehudai, president and CEO of Frutarom Group, said: “The acquisition of Grow blends in well with our rapid and profitable growth strategy, deepening and expanding Frutarom’s activity in the growing field of natural specialty dietary supplements and the use of unique technologies in their manufacture. We will continue investing in significantly expanding our global activity in this important and growing field, both through strategic acquisitions and by collaborating with universities, research institutes and startup companies for developing innovative natural ingredients.”

“The acquisition of Grow brings to Frutarom advanced R&D capabilities as well as some major customers,” continued Mr. Yehudai. “Thanks to Frutarom’s proven experience in successfully carrying out acquisitions and realizing the synergies arising from combining the acquired activity with Frutarom’s activity and the many cross-selling opportunities, we are convinced this acquisition too will contribute towards Frutarom’s continuing rapid and profitable growth and generate high value for our customers, employees and investors.”

The acquisition of Grow is Frutarom’s 29th acquisition in the past five years. “We have an excellent pipeline of future acquisitions which will contribute, along with continued reinforcement of our market leadership in joining together the worlds of natural flavors and health, towards achieving the goals we recently set out: $2 billion in sales by 2020 along with an EBITDA margin of over 22% in our core activities,” Mr. Yehudai said.