Frutarom expands in Central America with Aroma SA

November 29, 2013

Frutarom Industries Ltd. has acquired the Guatemalan flavor company Aroma SA (held by International Aroma Corp, a Panama company) for a net consideration of $12.5 million. As part of the transaction, Frutarom is acquiring Aroma’s plant in Guatemala.

Aroma, which was established in 1990, is engaged in the development, manufacture, and marketing of flavors, mainly for beverages, dairy products, confectionary, snacks, and convenience food. The company has a staff of 57 employees and a production, development, and marketing site in Guatemala City. Aroma’s wide customer base includes global food and beverage manufacturers as well as local food and beverage manufacturers in Guatemala, Honduras, Costa Rica, El Salvador, and additional growing markets, primarily in Central America.

In the past few years Aroma has been growing rapidly and its sales increased 75% from 2009 to 2012 with a considerable improvement in the profit and profitability, which amounted to $2.3 million. Aroma’s owner and CEO has extensive experience in this industry and will continue to manage Aroma’s business together with Frutarom’s management.

“Aroma is one of the leading local companies in Central America and in the last few years has become a key supplier to leading global food and beverage companies in these markets. The company anticipates continued growth in sales to these customers, together with the development of new markets. Frutarom intends to take advantage and integrate Aroma's production, R&D, sales, and marketing infrastructure with Frutarom’s global infrastructures in order to leverage and exploit the cross-selling opportunities generated by this acquisition,” said Ori Yehudai, President and CEO of Frutarom.

Press release