THAILAND – Flavours and colours company Frutarom has acquired 60% of the shares of Thai company The Mighty Co. Ltd for approximately US$12 million.
This is the eighth acquisition in 2017 and 27th acquisition since 2015 of the Israeli’s flavors company.
In the framework of the of the deal, Frutarom will initially acquire 49% of Mighty and, subject to a number of conditions precedent and regulatory approvals in Thailand, will raise its holdings to 60%.
The deal includes a mechanism for future consideration subject to Mighty’s future performance and an option for the purchase of the balance of holdings in Mighty in two stages in periods beginning three years and five years from the date the transaction is completed.
Mighty’s sales turnover in the 12 months ended August 2017 totalled to approximately US$15 million after having registered average annual growth of 12% over the past four years.
“The acquisition of the Thai flavors company Mighty is an additional acquisition of activity in Frutarom’s core field, which strengthens our global market leadership in the field of savory along with deepening our activity in the important growing region of Southeast Asia.
It continues Frutarom’s implementation of its rapid and profitable growth strategy and realization of its vision ‘to be the preferred partner for tasty and healthy success.’
The acquisition will contribute towards strengthening our position in Thailand while attaining a significant comparative advantage of proven innovative R&D capabilities.
Advanced local sales and production centre in one of Southeast Asia’s most important and fastest growing markets,” said Mr. Yehudai.
“We continue to view Southeast Asia as an important region in our map of future growth and are examining further transactions in the region that will allow accelerated growth in our core activities.”
In conclusion, Mr. Yehudai said, “The Mighty acquisition is our eighth acquisition this year, following 27 acquisitions we have made since 2015 which have been successfully integrated into our global activity.
They have been and will continue contributing to further growth in sales and improved profits and margins through maximal capitalization on the synergies they bring.
We have an outstanding pipeline of further strategic acquisitions of companies and activities within the scope of our operations, and we will continue carrying out our rapid profitable growth strategy.
This is based on combining profitable internal growth and strategic acquisitions, in order to achieve the targets we set: sales of at least US$ 2 billion with an EBITDA margin of over 22% in our core activities by the year 2020.”