Israeli flavors and fine ingredients company Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; Bulletin Board: FRUTF) today announced that it would exercise its option to acquire the remaining 25% of Vantodio for $40 million. Vantodio owns Russian company Protein Technologies Ingredients (PTI).
Frutarom acquired 75% of Vantodio for $50 million in late 2013, reflecting a company value of $67 million.
Frutarom said that PTI, founded in in 1996, was developing, producing, and marketing savory taste solutions, including flavor extracts, spice mixtures, and raw materials for the food industry, with an emphasis on processed meat and convenience food. Frutarom also said that following the acquisition, "Frutarom has become one of the leading and largest producers of special savory taste solutions in Russia and other countries in the region, with R&D, sales, marketing and distribution set-ups."
25 distribution centers in Russia and nearby countries
The acquired company has two production sites near Moscow; an R&D, marketing and sales center in the city, including development and applications laboratories; and 25 distribution centers spread around Russia and other countries in the region. PTI has 500 employees.
Frutarom president and CEO Ori Yehudai said, "The acquisition has significantly enhanced our technological capabilities, the basket of products we offer our customers, and our extensive local and global customer base. PTI is the leading local manufacturer in the Russian market. As we expected, the combination of a leading local manufacturer with the support of a global company like Frutarom has reinforced our leading position in the market and accelerated our internal growth and profits."
Published by Globes [online], Israel Business News - www.globes-online.com - on February 1, 2017
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