ISRAEL – Frutarom, a flavor and fragrance company based in Israel has secured a US$21.02 million loan from Bank Leumi for the acquisition of UK-based flavors company, Flavours & Essences (UK) Ltd.
Flavours & Essences (UK) Ltd, founded in 1998 and in Blackburn, United Kingdom develops, manufactures, and distributes flavors and natural colors.
In August 2017, Frutarom had signed an agreement to purchase 100% of Flavours & Essences Ltd’s shares and the investment was to be financed by bank debt.
“The strategic acquisition forms a crucial continuation of our successful, rapid and organic growth strategy.
Just as we’ve grown substantially in recent years, so have our requirements for loan facilities – and yet again Bank Leumi have delivered,” said Ori Yehudai, President & CEO at Frutarom.
“This is another acquisition of activity in Frutarom’s core field which will enable us to offer our customers a wider portfolio of solutions.
This acquisition is further reinforcement for our growing activity in the UK where Frutarom holds a leading position in flavors.
Frutarom will drive at exploiting to the utmost the cross-selling opportunities inherent in this acquisition and will work towards expanding the product portfolio to F&E’s existing customer base.”
In addition, the company will take measures to achieve maximum commercial and operational efficiency from merging F&E’s activity with its own activity in the UK, he added.
The company says that Frutarom and Flavors and Essence complement each other as F&E engages in the development, production and marketing of flavors and natural colors, an area that has presented growth opportunities in the recent past.
The acquisition adds a range of flavor solutions to Frutarom’s existing portfolio expanding its position in the UK market.
The company has been in an aggressive acquisition spree, buying companies in Africa, Asia, Americas and Europe to expand its influence around the World
Among its targets in 2017 included Unique Flavors in South Africa, the French flavors company René Laurent, the Vietnamese flavors company WFF and SDFLC of Brazil with its flavor solutions for ice creams and desserts.