Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) announced today that it has acquired 100% of the share capital of the US flavors company Foote & Jenks for approximately $4 million. The transaction was completed upon the signing of the agreement and financed through bank debt.
Foote & Jenks was founded in the early 1980s. It develops, manufactures and markets flavor extracts for the pharma, food and beverages industries. The company has 10 employees, a site in New Jersey for its production, R&D and marketing activities, and a broad customer base in North America. Its sales turnover for 2014 amounted to approximately $ 2.9 million.
Frutarom says it will work towards fully capitalizing on the many cross-selling opportunities arising from the acquisition and expanding the product portfolio offered to the company's existing customer base, and that it will also work towards achieving maximum commercial and operational efficiencies at Foote & Jenks in cooperation with other Frutarom USA production sites.
Frutarom Group CEO Ori Yehudai said, "This is an acquisition of growing and profitable flavor activity, Frutarom's most profitable core field. The acquisition of Foote & Jenks is the eighth acquisition we are completing this year and marks the continuation of carrying out our plan to expand our activity in the US market."
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2015
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