Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; Bulletin Board: FRUTF) is continuing its shopping spree. On Monday, it announced the acquisition of the business and assets of Florida-based CitraSource, which specializes in R&D, manufacturing, marketing and selling of unique solutions in citrus specialty ingredients, for $7.5 million in cash, plus an additional future payment subject to CitraSource's performance in 2014-18.
Frutarom is a global producer of specialty citrus solutions. It says that the acquisition will accelerate its abilities in developing and producing advanced taste and health solutions, giving the company an important competitive advantage.
CitraSource had $7 million revenue in 2013. Its customers include leading global flavors, food and beverage players. Its knowhow across all ranges of citrus (orange, grapefruit, lemon, lime and tangerine) will expand Frutarom's natural ingredients portfolio.
"Frutarom is a leading global manufacturer of specialty citrus solutions, and the acquisition of CitraSource is another step in the execution of our strategy of achieving rapid and profitable growth based on natural and healthy products," said Frutarom president and CEO Ori Yehuda. "CitraSource brings Frutarom advanced R&D and global sourcing capabilities, in the US, Central and South America in particular, an experienced management team, and a presence in Florida, one of the world's main citrus centers. This acquisition supports Frutarom's strategy of expanding its US activity and developing value-added natural solutions in line with global market trends and with the needs of our flavors, food and beverage customers."
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2014
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