Frutarom Industries Ltd., a manufacturer of flavors and specialty fine ingredients, has acquired 100% of Aromco Ltd. for $25 million. With this transaction, Frutarom has completed its fourth acquisition of flavors companies since the beginning of 2011.
Aromco develops, manufactures, and markets flavors for the beverage, dairy, confectionary, bakery, and savory markets with annual sales of $13 million in 2010. Aromco’s owner, Keith Brown, founded the company in 1985 focusing on business development and penetrating into developing markets in Eastern Europe, Africa, and Asia as well as building a market share in the United Kingdom. Acquiring Aromco will enable Frutarom to broaden its activity and market share in these developing markets, which enjoy high growth rates, as well as to strengthen its current product supply chain. Additionally, Frutarom will utilize Aromco’s innovation activities in flavor creation, development, and application. Aromco’s existing operational activity in England, employing 40 people, will be used to strengthen the merged activities using Frutarom’s global organization giving operational and cross selling synergies.
“The acquisition of Aromco, which is active and growing extensively in developing markets, complements our strategy and strengthens our presence and market share. Aromco’s activity in the U.K. market will be merged with Frutarom’s existing successful activity in which Frutarom is already considered a leading player. We will strive to maximize the numerous synergies among the different activities of Frutarom by utilizing the operating synergies in the different countries to accelerate the cross-selling opportunities and to achieve significant efficiencies and savings,” said Ori Yehudai, Frutarom’s President and CEO.