ISRAEL – Frutarom, one of the world’s largest companies in the field of flavours and natural specialty, has announced the completion of the 51% acquisition of Bremil Industries, for approximately US$30 million.

Bremil Industries is Brazil’s top producer of savory solutions and its partnership with Frutarom deepens and expands the penetration into the Latin America’s growing markets.

According to the company, it has built up global leadership in savory solutions over the recent years, thanks to the specialized technology and diverse innovative solutions.

The purchase agreement includes an option for the purchase of the balance of Bremil’s shares, to take effect starting five years from the date of the transaction’s completion.

According to Bremil’s managerial reports, its revenues over the 12 month period ending April 2018 totalled approximately US$38 million.

Bremil was established in 1987 in the city of Passo Fundo in the Brazilian state of Rio Grande do Sul and holds a leading position in Brazil’s savory solutions market, with emphasis on convenience foods, prepared foods and processed meats.

The Bremil acquisition fits in well with Frutarom’s expanding global activity in savory solutions; strengthens its global leadership in this field and also provides Frutarom market leadership in Brazil and Latin America.

Bremil’s specialized know-how and technology along with Frutarom’s expansive sales and marketing platform in Brazil and Latin America, Frutarom will work on expanding Bremil’s activity into additional countries as well as capitalizing on the many cross-selling opportunities for Frutarom products among Bremil customers.

Bremil’s founders and managers will continue managing the activity and they will also continue as shareholders with 49% of Bremil’s capital equity.

“The acquisition of Bremil is a continuation of the implementation of Frutarom Group’s rapid profitable growth strategy and the realization of its vision ‘to be the preferred partner for tasty and healthy success.’

This is an important strategic acquisition which enables Frutarom to make an additional major leap forward in strengthening its global leadership in savory solutions, as well as substantially reinforcing our position in the growing Brazilian market in particular and in Latin America in general,” said Ori Yehudai, President and CEO of Frutarom Group.

“I am convinced that this infrastructure will support the continued rapid growth of our activity in Latin America.

In recent years Frutarom has been successfully implementing a strategy of rapid geographic expansion in North America and in emerging markets, which have higher rates of growth.”

The strategy has resulted in Frutarom sales in Latin America over the past seven years having grown by a factor of 16, and sales in emerging markets having grown fivefold, while Frutarom’s total sales grew by a factor of 3.3.

Frutarom’s percentage of sales in Latin American reaches nearly 15% compared to approximately 3% in 2010 and the percentage of sales in emerging markets will be close to 45% of total Frutarom sales compared with 27% in 2010.