Frutarom Industries Ltd. has announced the acquisition of the business and assets of CitraSource for $7.5 million plus an additional future payment conditional upon CitraSource’s performance in the years 2014–2018. Florida-based CitraSource specializes in R&D, manufacturing, marketing, and selling of unique solutions in citrus specialty ingredients to players in the global flavor and fragrances market as well as to the food and beverage industries.
CitraSource’s revenues in 2013 were about $7 million. CitraSource’s knowhow, expertise, and capabilities across all ranges of citrus (orange, grapefruit, lemon, lime, and tangerine) will expand Frutarom’s natural ingredients portfolio and together with CitraSource’s worldwide sourcing network will add to Frutarom’s position in the market of production and selling of citrus specialty, an essential ingredient for flavors and many food and beverages products.
The CitraSource assets acquired include a manufacturing facility, a refrigerated tank farm for storing different types of raw materials including citrus specialty, and inventory. These will be integrated into Frutarom’s global supply chain and production infrastructure and will contribute to the expansion and strengthening of Frutarom’s global purchasing system.
CitraSource managers Niv Ben Yehuda and Randy Aulick will continue managing CitraSource activity, supporting Frutarom’s efforts in growing its global citrus business. CitraSource’s activity will be consolidated into Frutarom’s Fine Ingredients business unit.
“Frutarom is a leading global manufacturer of specialty citrus solutions, and the acquisition of CitraSource is another step in the execution of our strategy of achieving rapid and profitable growth based on natural and healthy products,” said Ori Yehudai, President and CEO of Frutarom. “The strengthening of our control over the sourcing of our raw materials (back integration) which CitraSource brings us will further enhance our leadership position in the market for citrus specialty ingredients and will allow us to expand our product portfolio and provide added value to our customers.”