Israeli flavors and specialty fine ingredients company Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) has acquired Austrian flavors maker Wiberg for €119 million ($130.4 million). This is larger than any of the company's previous 12 acquisitions in 2015.
Wiberg, based in Austria also includes operations in Germany, Turkey, the US and Canada and 2015 revenue is expected to reach $172 million. The transaction will be financed using bank debt and completion of the transaction is subject to approval from the German and Austrian antitrust authorities, which Frutarom expects will be granted at the beginning of 2016.
Wiberg, which has 670 employees, produces specialty and innovative savory solutions (the non-sweet spectrum of flavors) that include flavor extracts, seasoning blends and functional ingredients for the food industry, with special emphasis on processed meats and convenience foods as well as activity focused on innovative culinary solutions for restaurants, catering firms and chefs. which constitute an interesting and distinctive premium market. Wiberg has sales and marketing platforms in some 70 countries, with a presence in Europe, North America, Africa and Asia. Wiberg's broad customer base encompasses thousands of food manufacturers.
Frutarom Group president and CEO Ori Yehudai said, "The Wiberg acquisition is the largest strategic acquisition we have carried out so far and the first we'll be carrying through in 2016. This acquisition constitutes an important milestone for Frutarom Group's continuing implementation of its rapid growth strategy and the realization of its vision 'to be the preferred partner for tasty and healthy success' while establishing our position as one of the world's largest, foremost and fastest growing companies in the fields of taste and health."
Published by Globes [online], Israel business news - www.globes-online.com - on December 14, 2015
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