USA –Israeli flavours companyFrutarom has acquired a 70% stake in the Argentinean flavor and fragrances company, Group Meroar for US$ 11.2 million deepening its expansion strategy into the Latin American market.

According to the company, the remaining 30% stake will remain under the ownership of the original shareholders in Meroar.

The purchase agreement includes an option to purchase the balance of Meroar’s shares, starting from the elapse of 3 years of completion of the transaction, at a price based on Meroar’s business performance during this period.

Frutarom is seeking to establish a strong market in Argentina, something that will open up other market opportunities in view of its strength in technologies and solutions in flavors and fragrances.

As part of the agreement, Buenos Aires-based Meroar founders will retain their management positions and will form part of Frutarom’s management structure in Latin America.

According to Mr. Ori Yehudai, president and CEO of Frutarom Group, the acquisition marked an important entry into Argentina, which will enable Frutarom widen its portfolio.

Customers will then have a broader category to choose from, at the same time benefiting from innovative flavors and fragrances.

It also delivers on Frutarom’s strategy to unlimited design solutions in creating added value products including flavors, functional ingredients and food systems through a global presence.

“Meroar has extensive know-how acquired over the years and unique flavours and fragrance solutions based on its founders’ extensive experience.

“Those will contribute to building up our position in these activities, with an emphasis on Latin America.

This is in combination with our activity in the fragrance industry in Peru, through Montana, which will enable some very interesting synergies and cross-selling opportunities, in Argentina, Peru, and other Latin American countries,” said Yehudai.

Frutarom invested US$6.16 million in its newly opened natural color formulations facility at its Etol plant in Celie, Slovenia.

In 2017 Frutarom acquired the Israeli company Turpaz, with development centers in the U.S. and the South of France, as well as the Polish company Pollena Aroma.