Frutarom Industries Ltd. has signed an agreement to acquire the savory activity and assets of Chr. Hansen A/S in Germany for approximately US$ 7.3 million.
Frutarom Industries Ltd. has signed an agreement to acquire the savory activity and assets of Chr. Hansen A/S in Germany for approximately US$ 7.3 million. Chr. Hansen’s savory business had 2008 sales (ending Aug. 31, 2008) of approximately US$ 7.7 million, and in just the last nine months, sales reached approximately US$ 7 million. The Savory Functional Systems activities of Chr. Hansen develops, produces, and markets savory solutions, including flavors, seasoning compounds, and functional ingredients for the food industry, with special emphasis on the fields of processed meat and convenience food. The acquired activity holds an extensive customer base, mainly among leading meat producers in Germany, and export activities to Scandinavia and the U.K. According to Frutarom, this business is extremely synergetic to Frutarom’s German activities—Gewurzmuller and Nesse—acquired in 2007 and 2006. The acquired activity has a production site in Holdorf, Germany, located 140 km from Frutarom’s production site in Nesse. During the following months, Frutarom intends to shut down the Holdorf site and transfer the production to its sites in North and South Germany, while achieving significant operational savings.
“The acquired activity holds a significant market share among leading industrial meat customers in Germany, and it will strengthen Frutarom’s positioning and its market share among these customers,” said Ori Yehudai, President and CEO of Frutarom. “The acquisition considerably boosts both Frutarom’s technological capabilities and its product offering to customers worldwide in the field of savory flavors and functional products, as well as Frutarom’s extensive global customer base.”