Frutarom Industries Ltd. has announced its fourth acquisition this year of 100% of the share capital of U.S.-based Hagelin for $52.4 million.
Frutarom Industries Ltd. has announced its fourth acquisition this year of 100% of the share capital of U.S.-based Hagelin for $52.4 million. This acquisition strengthens Frutarom’s foothold in the U.S. market, which is the world’s biggest flavor market, and accelerates its penetration into the developing and fast growing markets of Central and South America and Africa. This acquisition substantially expands Frutarom’s business activity in the growing and profitable beverage flavors sector. Frutarom has completed four acquisitions in 2013, with a total sales turnover of $147 million in 2012, investing a total of $120 million.
Hagelin was established in 1967 and employs a staff of 84. It is engaged in the development, production, and marketing of flavors and unique flavor technologies for the food industry, with an emphasis on the growing sector of beverage flavors. Hagelin’s sales turnover totaled $24.2 million in 2012, up 7% from 2011.
Hagelin’s customer base includes leading international food and beverage manufacturers and local food and beverage manufacturers in the United States, United Kingdom, and in developing markets such as Central and South America and Africa, which have experienced high growth rates. This acquisition is expected to expand Frutarom’s customer base, while creating many cross-selling opportunities.
Hagelin’s executive team will join and contribute to Frutarom’s U.S. management. Hagelin has three R&D, production, and marketing sites, two of them in the U.S. (New Jersey and Georgia), and one in the U.K.
“We are happy to announce the acquisition of U.S. Hagelin, which will substantially bolster our presence in the biggest flavors market in the world and in other important developing markets, which we identified as strategic to securing our rapid growth. The acquisition of this lucrative company will intensify Frutarom’s technological capabilities, especially in the growing and profitable beverage flavors sector, and adds to its R&D capabilities, sales, and marketing infrastructure and cross-selling opportunities. In this acquisition, we will enjoy a significant reinforcement of excellent managers, R&D, sales, and marketing personnel,” said Ori Yehudai, President and CEO of Frutarom.