Frutarom acquires Flavoring Extracts business
The Todd acquisition is intended to continue strengthening Frutarom's flavor extracts capabilities and market leadership position, and to support Frutarom's growth in the US market.
17/06/05 Frutarom has announced the purchase of the Flavoring Extracts business of A.M. Todd Botanical Therapeutics. The acquisition will be executed through Frutarom's wholly owned subsidiary, Frutarom USA Inc. This acquisition is another step in implementing Frutarom's rapid growth strategy, combining organic growth of core activities at rates that are above the industry average with strategic acquisitions of activities and know-how in its main fields of business and in strategic geographic regions.
The acquisition is intended to continue strengthening Frutarom's flavor extracts capabilities and market leadership position, and to support Frutarom's growth in the US market.
The acquired activity's sales in 2004 were US$ 1.8 million, and represent a potential value of several million dollars of increased revenues over the next few years. In consideration for the acquired activity Frutarom will pay up to US$ 325,000.
The acquired activity is synergetic with Frutarom's existing activity and will add know-how and technology as well as expanding Frutarom's customer base, including leading food and F&F companies. The acquired activity will be integrated with Frutarom USA's existing activity at its North Bergen manufacturing facility. The company does not expect any additional resources will be required. Frutarom continues to invest substantial resources in identifying and executing strategic acquisitions to strengthen its position in the United States.
Two weeks ago, Frutarom announced its results for the first quarter of the year, showing growth for the twenty-second consecutive quarter. Sales grew 47.3% compared with the first quarter in 2004 reaching US$ 64.7 million, and net profit grew by 66.2% compared with the same quarter last year, reaching US$ 7.1 million.
