Frutarom Buys Foote & Jenks for $4 Million in Eight Acquisition Deal This Year
30 Jun 2015 --- Israeli Frutarom Industries Ltd, the flavors and specialty fine ingredients company, has continued its spending spree with the acquisition of US flavors company Foote & Jenks for approximately US$ 4 million. It is the company’s eighth acquisition this year.
Frutarom 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. Frutarom will also work towards achieving maximum commercial and operational efficiencies at F&J in cooperation with other Frutarom USA production sites.
Ori Yehudai, President and CEO of Frutarom Group, said: "This is an acquisition of growing and profitable flavor activity, Frutarom's most profitable core field. A major part of F&J sales is to customers in the pharma industry who demand advanced solutions for masking the aftertaste of active ingredients contained in their products, as well as high quality, and conformance with strict regulatory requirements. Frutarom already operates in this area and views it as an attractive field of endeavor for itself which also provides a good fit with the activity of its specialty fine ingredients division that includes activity in active ingredients with added health value for the pharma and nutraceutical industries. We see significant synergies between F&J activity and Frutarom's flavors activity in the US, and we intend to leverage the cross-selling possibilities that this acquisition generates both by expanding the product portfolio and by broadening the customer base."
Mr. Yehudai concluded in saying that: "We are continuing to implement our rapid and profitable growth strategy combining internal growth and strategic acquisitions. The acquisition of F&J 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. We are working towards identifying and executing further strategic acquisitions of companies and operations in our fields of activity, with special focus on fast-growing markets and activities."
