08.22.11
Frutarom Industries Ltd. has acquired 100% of Aromco Ltd. for $25 million in cash, completing its fourth acquisition of flavors companies since the beginning of 2011.
Aromco develops, manufactures and markets flavors for the beverage, dairy, confectionery, bakery and savory markets with annual sales turnover growing impressively in recent years and achieving $13 million in 2010. Aromco's owner, Keith Brown, founded the acquired company in 1985 focusing on business development and penetrating into developing markets with high growth potential in Eastern Europe, Africa and Asia as well as building a market share in the U.K.
Acquiring Aromco is expected to enable Frutarom to broaden its activity and market share in these developing markets, which enjoy high growth rates, as well as to strengthen its current product supply chain. Additionally, Frutarom will utilize Aromco's extensive innovation activities in flavor creation, development and application. Aromco's existing efficient operational activity in England, employing 40 people, will be used to strengthen the merged activities using Frutarom's global organization giving operational and cross selling synergies.
“The acquisition of Aromco, which is active and growing extensively in developing markets, compliments our strategy and strengthens our presence and market share,” said Ori Yehudai, Frutarom's president and CEO. “Aromco's activity in the U.K. market will be merged with Frutarom's existing successful activity in which Frutarom is already considered a leading player. We will strive to maximize the numerous synergies among the different activities of Frutarom by utilizing the operating synergies in the different countries to accelerate the cross-selling opportunities and to achieve significant efficiencies and savings. The acquisition enriches Frutarom with a skilled and experienced Research and Development team which will contribute to expanding our existing product and technology range enabling an enhanced offering to our customers.”
Aromco develops, manufactures and markets flavors for the beverage, dairy, confectionery, bakery and savory markets with annual sales turnover growing impressively in recent years and achieving $13 million in 2010. Aromco's owner, Keith Brown, founded the acquired company in 1985 focusing on business development and penetrating into developing markets with high growth potential in Eastern Europe, Africa and Asia as well as building a market share in the U.K.
Acquiring Aromco is expected to enable Frutarom to broaden its activity and market share in these developing markets, which enjoy high growth rates, as well as to strengthen its current product supply chain. Additionally, Frutarom will utilize Aromco's extensive innovation activities in flavor creation, development and application. Aromco's existing efficient operational activity in England, employing 40 people, will be used to strengthen the merged activities using Frutarom's global organization giving operational and cross selling synergies.
“The acquisition of Aromco, which is active and growing extensively in developing markets, compliments our strategy and strengthens our presence and market share,” said Ori Yehudai, Frutarom's president and CEO. “Aromco's activity in the U.K. market will be merged with Frutarom's existing successful activity in which Frutarom is already considered a leading player. We will strive to maximize the numerous synergies among the different activities of Frutarom by utilizing the operating synergies in the different countries to accelerate the cross-selling opportunities and to achieve significant efficiencies and savings. The acquisition enriches Frutarom with a skilled and experienced Research and Development team which will contribute to expanding our existing product and technology range enabling an enhanced offering to our customers.”