ISRAEL – Frutarom, one of the world’s 10 largest companies in the field of flavors and natural specialty fine ingredients, has announced that it has taken full ownership of the special nutrition company Enzymotec for US$210 million.
Enzymotec’s acquisition is the company’s ninth acquisition this year and 28th in the last two years.
It follows an earlier acquisition of an increased stake in the company in August of a 9.2% stake, which took its shareholding in Enzymotec to 19.1%, which uses proprietary technologies to produce liquid nutritional ingredients and medical foods.
“The Enzymotec acquisition is a continuation of the implementation of Frutarom’s rapid and profitable growth strategy and the realization of its vision “to be the preferred partner for tasty and healthy success,” said Ori Yehudai, President and CEO of Frutarom Group.
“This is another acquisition of activities complementary to Frutarom’s core activities that enable us to offer our customers a broader and more unique and profitable portfolio of solutions.
“In accordance with this strategy we are continuing to expand the portfolio of natural specialty products we offer our customers based on in-house R&D, through collaborations with universities, research institutes and start-ups, and by means of acquisition as well.”
“Enzymotec has grown from a small start-up into a leading specialty nutrition company with dedicated and talented employees who will further reinforce Frutarom’s businesses.
We are confident that this transformative merger will bring new synergies to both businesses, in particular bringing Enzymotec’s strong R&D and wealth of knowledge into the Frutarom fold to further expand Frutarom’s capabilities,” said Mr. Erez Israeli, Enzymotec’s President and Chief Executive Officer.
According to Frutarom, Enzymotec’s nutrition segment which targets the pharmaceuticals, dietary supplements and infant formula sectors contribute to its profitable growth strategy and expand its portfolio of solutions to customers in these sectors where Frutarom has almost no activity currently, plus the elderly clinical nutrition sector, where Frutarom is already active.
Frutarom has been on unprecedented acquisition spree in the last few years, mainly flavours and colours business, in such places as Thailand, Brazil, Switzerland, South Africa and Ireland.
Since 2015, the company has acquired 28 companies, which the company says it has successfully integrated into its global operations.
Accelerated internal growth and the contribution of the acquisitions have increased the company’s annual sales to approach US$1.5 billion this year, according to the President and CEO of the company.
The company says it is in the process of identifying and executing further strategic acquisitions combined with profitable internal growth with a target of achieving sales of at least US$2 billion with an EBITDA margin of over 22% in its core activities by the year 2020.