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    Breaking News

    Frutarom Acquires Spanish Plant Extract Specialist Nutrafur

    Deal is Frutarom’s tenth acquisition since the beginning of the year.

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    09.10.15
    Continuing its acquisition strategy, Frutarom Industries Ltd. has purchased 79% of the shares of the Spanish company Nutrafur S.A. based on a company value of approximately $14.5 million (€13.1 million).

    Nutrafur specializes in the research and development, manufacture and sales and marketing of specialty natural plant extracts bearing antioxidant properties or scientifically proven healthy qualities and supported by clinical studies for the food, pharma, nutraceutical and cosmetics markets. Nutrafur sales for the 12-month period ending June 2015 amounted to approximately $13 million.

    Nutrafur has accumulated many years of know-how and excellent capabilities in the extraction of active components from vegetation, particularly rosemary, olive and citrus. Nutrafur products blend in well with Frutarom's portfolio of natural ingredient solutions and will help expand Frutarom's line-up of natural products for both food and health products. Nutrafur's activity in the field of antioxidants, particularly in the area of food preservation and protection and extending of shelf life based on natural components, establishes even further Frutarom's portfolio of solutions in this field which has been significantly strengthened following its acquisitions earlier this year of Vitiva and Ingrenat which are also active in this growing field.

    Active antioxidant ingredients constitute an important supporting product for food manufacturers, and Frutarom will integrate these specialty ingredients into the comprehensive portfolio of products and solutions offered to its many customers in the savory field as well. Frutarom will work toward capitalizing on the many cross-selling opportunities arising from the acquisition and supporting the continued rapid development and production of natural functional solutions that combine taste and health in response to consumer demand and the major trends in the global food market towar more natural and healthier foods.

    Nutrafur has an R&D and sales center and an efficient manufacturing site in Murcia, Spain with large production capacity and the possibility for considerable expansion. The company has 67 employees, of which about 10 are engaged in R&D and have advanced academic degrees and expertise in various fields.

    Nutrafur's production site is in close proximity to that of Ingrenat which was acquired during the first quarter this year, and this geographic proximity between the sites will provide maximum operational flexibility in terms of the use of various extraction technologies as well as use of the various manufacturing systems within the framework of optimizing Frutarom's global supply chain. The acquisition will allow for significant operational savings in Frutarom's global manufacturing structure in the area of natural extracts and in the fields of purchasing, production, logistics, and marketing of the Company's solutions in these fields.

    Ori Yehudai, president and CEO of Frutarom Group, said: "Over the last few months Frutarom has made a major leap forward in strengthening its position as a leading global producer of natural specialty ingredients and the acquisition of Nutrafur fits in well with our rapid and profitable growth strategy while deepening and expanding Frutarom's activity in the growing field of natural plant extracts and antioxidants for food products. We will continue investing in considerably expanding our global activity in this important and growing field both by means of strategic acquisitions and through collaboration with universities, research institutes and innovative product development startup companies.

    "The Nutrafur acquisition affords Frutarom advanced R&D capabilities along with a top-level and experienced managerial team, as well as substantial customers. The acquisition provides an opportunity for improving the Group's operational flexibility and efficiency. Thanks to Frutarom's proven experience in the successful execution of acquisitions and realization of the many synergetic and cross-selling opportunities inherent in combining acquired activities with those of Frutarom, we are convinced that this acquisition too will contribute towards the continuation of Frutarom's rapid and profitable growth and will generate top value for our customers, our employees, and our investors."

    The acquisition of Nutrafur is Frutarom’s tenth acquisition since the beginning of the year.
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