Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) today announced that it has signed an agreement to acquire South African flavors company JannDeRee (Pty) Ltd. Co. Frutarom will pay $5.2 million for JannDeRee, which had $5 million revenue in 2012. The deal was completed at the time of signing.
JannDeRee, founded in 1993, develops, manufactures, and markets flavors with an emphasis on savory flavors and sweet flavor solutions. JannDeRee, which has been growing rapidly over the last few years, has an R&D, production and marketing site in Johannesburg, South Africa, next to Frutarom’s South African site, and a wide customer base in South Africa and in other important emerging countries in the sub-Saharan region such as Malawi, Zimbabwe and Mozambique.
Frutarom said that JannDeRee’s activities are synergetic with own activities in South Africa in flavors, an area which has grown at rates higher than the rate of market growth over the past few years.
Frutarom has recently further strengthened its presence in African markets by adding additional sales personnel in key countries such as Nigeria.
Frutarom said that it will take immediate actions to integrate activities, including integration of R&D, marketing and sales infrastructures, purchase, production and supply.
Frutarom President and CEO Ori Yehudai said, “The acquisition will substantially strengthen Frutarom’s positioning in these fast growing regions of Africa. The acquisition contributes to the expansion of our product portfolio for countries in Africa, to the strengthening of our management, research and development, manufacturing, marketing and sales capacities in the area of savory flavors, an area where Frutarom has not yet been active in Africa."
He added, “We continue to seek out strategic acquisitions and to implement our rapid growth strategy combining profitable internal growth and acquisitions. Frutarom continues to accelerate its growth in both developed and emerging markets. We will continue to invest in the fast growing regions of Asia, Central and South America, Central and Eastern Europe and Africa, following a market share in emerging markets which has grown from 27% in 2010 to 36% in 2012."
Published by Globes [online], Israel business news - www.globes-online.com - on May 2, 2013
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