Flavors and specialty fine ingredients company Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) has signed an agreement to acquire Slovenian company Vitiva for a cash payment of about $9.9 million. The deal will be completed over the coming weeks.
Vitiva specializes in R&D, production, marketing and sales of specialty natural plant extracts exhibiting antioxidant activity or scientifically proven health attributes backed up by clinical studies and of natural colors for customers in the food, pharmaceuticals, nutraceuticals, and cosmetics markets. Its customers are some of the world's top food, pharmaceuticals, and cosmetics manufacturers. Vitiva's revenue grew 27% from $8.7 million in 2013 to $11 million for the 12-month period ending November 2014, and its activities will be integrated into Frutarom's specialty fine ingredients division.
Frutarom president and CEO Ori Yehudai said, "Frutarom is a leading global producer of natural specialty fine ingredients and acquiring Vitiva fits in well with our rapid and profitable growth strategy which is based on natural flavor and health products.
He added, "The acquisition of Vitiva brings Frutarom advanced R&D capabilities and a top-rate experienced management team. The acquisition represents another milestone in carrying out Frutarom's rapid and profitable growth strategy while broadening our portfolio of natural products and solutions at this important crossroads of consumer preference for healthier and tastier products making inroads in the worldwide food, health and cosmetics industries."
Vitiva CEO Ohad Cohen said, "Following the acquisition, Vitiva will be able to enjoy many development and growth opportunities stemming from combining both companies' R&D and scientific and technological expertise, expanding the product range, and from Vitiva's ability to substantially boost its marketing capability by virtue of Frutarom's global infrastructure while continuing to extend excellent service to its customers. I have no doubt that Frutarom is the best home for Vitiva."
Published by Globes [online], Israel business news - www.globes-online.com - on December 23, 2014
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