Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; Pink Sheets:FRUTF) has acquired UK company Savoury Flavours (Holding) Ltd. for ₤3.77 million ($5.9 million), and up to an addition 5% of the purchase price, subject to milestones by Savoury.
Frutarom financed the acquisition with bank credit. It added that the transaction was not a substantial asset acquisition.
Savoury Flavours was founded in 1999. It develops and manufactures, seasoning compounds, marinades and sauces, specializing in snacks and convenience foods. Its revenue totaled ₤4.1 million in the 12 months through September 2011, 28% more than the ₤3.2 million in the 12 preceding months. Most of its business is with including food manufacturers and private labels in the UK and in emerging markets.
Frutarom said that Savoury Flavours' business is synergetic with its current savory operations in Europe and Israel, and will strengthen the company's savory offerings, and expand into emerging markets. Savoury Flavours plant is adjacent to the plant of Frutarom subsidiary East Anglian Food Ingredients Ltd., which was acquired in February 2011, and Frutarom said that this proximity, as well as the two companies' complimentary product portfolio and technology, would create significant synergies and integration of activities.
Frutarom's share price rose 1% in morning trading on the TASE to NIS 35, giving a market cap of NIS 2 billion, after closing at $8.50 on Wall Street yesterday, and opening at ₤7.80 in London today.
Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2012
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