Frutarom acquires Belgian flavors co Taiga

Ori Yehudai

This is the Israeli flavors and specialty fine ingredients company's sixth acquisition since the start of 2014.

Israeli flavors and specialty fine ingredients company Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) has acquired 100% of the share capital of the Belgian flavors company Taiga International NV for $2.9 million. The acquisition, which was completed upon signing the agreement and was independently financed, is part of Frutarom's rapid growth strategy, and is the company's third acquisition in 2015, and follows three acquisitions in 2014.

Taiga, which was founded in 1992, develops, produces and markets flavors for the food, beverages and tobacco industries, including to leading manufacturers of chocolates. The company has 14 employees at its Belgian headquarters and serves a broad customer base in Europe and North America. Taiga's 2014 revenue was $4.9 million.

Frutarom plans to fully capitalize on the many cross-selling possibilities presented by the acquisition and aims to expand the product line sold to the company's existing customer base. Frutarom will also strive to maximize operational and commercial efficiency from the merging of Taiga's activities with its own activity in Europe, based on Frutarom's existing infrastructure and optimization of production sites. Frutarom president and CEO Ori Yehudai said, "This is an acquisition of activity in the field of flavors, Frutarom's core activity, which boasts high profitability margins. We see significant synergies between Taiga's activity and Frutarom's flavors activity in Europe and intend to leverage the cross-selling opportunities generated by this acquisition both by broadening the product portfolio and expanding the customer base."

Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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