Israeli flavors and specialty fine ingredients company Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) has signed an agreement to fully acquire Irish company Redbrook Ingredients Services Limited for $44.8 million (€ 40 million). The purchase agreement includes a mechanism for an additional consideration based on Redbrook’s future business performance. The transaction is being financed through bank debt. This is Frutarom's sixth acquisition in 2016 and part of its global expansion strategy. Redbrook was founded in 1987 and has an R&D and sales and marketing center and production site near Dublin as well as a production unit and R&D and sales and marketing center in Daventry, England, near Frutarom’s site at Wellingborough. Redbrook has 39 employees. Redbrook’s main activity is the development, production and marketing of innovative specialty savory taste solutions, which includes seasoning and functional blends, marinades, glazes, cures and specialty ingredients for food processors. The irish company's sales for the 12 months ending June 2016 was $ 25.4 million (€22.7 million). In the last three years Redbrook has enjoyed double digit growth.
Redbrook CEO Kieran Fox will continue in his role and will join Frutarom’s Flavors activity management.
Frutarom president and CEO Ori Yehudai said, "The acquisition of Redbrook is the continuation of the implementation of Frutarom Group's rapid profitable growth strategy and the realization of its vision 'to be the preferred partner for tasty and healthy success.' This is an important acquisition in establishing Frutarom’s standing as one of the world’s largest and leading companies for flavors, and strengthens its presence and position as a top global producer of natural, healthy and innovative savory taste solutions. The acquisition reinforces our market leadership in the UK and constitutes Frutarom’s first entry into the Irish market, also giving us the advantages of a global manufacturer having a local R&D, production and sales platform for shortening delivery times and improving service to customers of the region."
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2016
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