Frutarom Successfully Completes €22.3 Million Acquisition of Etol

In January and February, Frutarom acquired 63.4% of the Slovenian company’s share capital through transactions made on and outside the Slovenian stock market, in return for an overall amount of approximately €22.3 million. Following the current acquisition of 34.2% of the company’s equity through this takeover bid, Frutarom will now hold 97.6% of Etol’s shares.

20 Mar 2012 --- Frutarom Industries Ltd., one of the largest flavor & ingredients companies in the world, has announced the success of its takeover bid for Etol d.d., a Slovenian public company, in return for €141 per share.

In January and February, Frutarom acquired 63.4% of the Slovenian company’s share capital through transactions made on and outside the Slovenian stock market, in return for an overall amount of approximately €22.3 million. Following the current acquisition of 34.2% of the company’s equity through this takeover bid, Frutarom will now hold 97.6% of Etol’s shares.

The total amount paid for the acquisition of 97.6% of the shares was €34.6 Million. Over the next few weeks Frutarom will act to delist Etol from the Slovenian Stock Exchange and to acquire the balance of shares in Etol from the remaining shareholders.

Last week Frutarom published its financial results for 2011, reporting a 15% growth in its sales, achieving a record of US$518.4 million.

Etol, Frutarom’s eighth acquisition since the start of 2011, is specialized in the development of fruit based flavors and products and food systems, using local fruits of the region, and has extensive operations in the growing market of beverage bases, which Frutarom has identified as a strategic for development.

Etol has exhibited impressive growth rates over the past few years, and its sales turnover has increased by 46%, from revenues of €31.5 million in 2006 to revenues of €46 in 2010. Over the nine months ending on September 30, 2011 Etol’s sales turnover grew at a rate of 7% in local currency terms compared to the same period in 2010, reaching €38.6 million. The EBITDA in 2010 net of one-time expenses stood at approximately €8.4 million.

According to Frutarom’s President and Chief Executive Officer, Ori Yehudai:

“Frutarom considers this an important and strategic acquisition, which significantly expands Frutarom’s operations in Central- and Eastern Europe and strengthens its presence and market share in these fast growing markets, and further positions Frutarom as a leading global player.

“Etol’s proven abilities and many years of experience in the flavors market, with its specialization in natural products in beverage bases, are a strategic asset for Frutarom. We welcome Etol’s experienced and professional team to the Frutarom family, and will act to create value from the many cross-selling opportunities created as a result of the acquisition, the operational efficiency opportunities it offers and from the expansion of our operations in Central and Eastern European markets.”