Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; Bulletin Board: FRUTF) has acquired US flavors company Hagelin & Company Inc. and its affiliate BRC Operating Company LLC for $52.4 million. The acquisition was made through Frutarom USA and was financed by a short-term bank loan.
Hagelin is Frutarom's third acquisition in a month, following the acquisitions of 75% of Russian savory and seasoning compounds company Protein Technologies Ingredients Group (PTI) for $50.3 million and Guatemalan flavors company Aroma SA for $12.5 million.
Hagelin was founded in 1967 and has 84 employees. Its revenue rose 7% from $22.7 million in 2011 to $24 million in 2012. The company focuses on unique flavor technologies for the growing area of beverage flavors, with an emphasis on sodium, sugar, and calorie reduction. It higher margin rates than those of Frutarom's Flavors' division (the most profitable of Frutarom's activities) into which Hagelin's activity will be integrated
Frutarom says that the acquisition expands its product portfolio and innovative and advanced technologies. Frutarom USA will integrate Hagelin's management. Hagelin's customers include multinational food and beverage manufacturers as well as local food and beverage manufacturers in the US, the UK and in developing markets, mainly in Central and South America and in Africa. It has three R&D, production and marketing sites, two in the US and one in the UK.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2013
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