Frutarom Industries (TASE: FRUT; LSE: FRUT) announced today the purchase of the flavoring extracts business of A.M. Todd Botanical Therapeutics. The acquisition, which will be executed through Frutarom's wholly owned subsidiary, Frutarom USA, will be made at up to $325,000.
The acquisition is intended to continue strengthening Frutarom's flavor extracts capabilities and market position, and support growth in the US market.
A.M. Todd's flavoring extracts business made $1.8 million in sales in 2004. The acquired activity will be integrated with Frutarom USA's existing activity at its North Bergen manufacturing facility. The company does not expect any additional resources will be required.
Frutarom stated that it continues to invest substantial resources in identifying and executing strategic acquisitions to strengthen its position in the US.
Frutarom's net profit for the first quarter of 2005 was $7.1 million on revenue of $64.7 million.
Frutarom's products, which are intended for the food, beverage, flavor, fragrance and pharmaceutical industries, are produced at its plants in the US, England, Switzerland, Germany, Israel, Denmark, China, and Turkey. The company's global marketing organization has branches in Israel, the US, England, Switzerland, Germany, Scandinavia, France, Hungary, Romania, Russia, Ukraine, Kazakhstan, Belarus, Turkey, Brazil, Mexico, China, Japan, Hong Kong and India. The company also works through local agents and distributors worldwide. Frutarom employs about 1,000 people worldwide.
In February of this year Frutarom issued shares on the London Stock Exchange main list.
Published by Globes [online], Israel business news - www.globes.co.il - on Wednesday, June 15, 2005