Frutarom has signed an agreement to acquire Rieber Industrial Spices Savory activity and its fixed assets of Rieber & Søn ASA from Norway, at the amount of approximately $4.2 million.
Frutarom has signed an agreement to acquire Rieber Industrial Spices Savory activity and its fixed assets of Rieber & Søn ASA from Norway, at the amount of approximately $4.2 million. Rieber’s annual turnover in 2010 is expected to total $6.3 million. The acquisition is subject to the approval of the Norwegian Competition Authority. Frutarom estimates that the approval will be obtained within a number of weeks.
Rieber is an activity of the international food manufacturer Rieber & Søn ASA, and engages in the development, manufacture, and marketing of savory taste solutions. Its product line includes flavors, seasoning compounds, and functional ingredients for the food industry, with a specialization in the processed meat, fish, and convenience food sectors. Rieber’s R&D, marketing, and manufacturing capabilities are located in its operational facility in Norway. Rieber serves a broad customer base including leading food manufacturers located mainly in Scandinavia. Its activities are synergetic with Frutarom’s current savory competencies in Europe, which have grown significantly in recent years following the acquisitions of the savory activity of Chr. Hansen, Gewurzmuller, and Nesse in Germany.
According to President and Chief Executive Officer of Frutarom, Ori Yehudai, “the acquisition of Rieber is a continuation of Frutarom’s rapid growth strategy, and another step in the fulfillment of its vision ‘to be the preferred partner for tasty and healthy success.’ This acquisition bolsters Frutarom’s presence and positioning as a leading global producer of savory solutions. The acquisition strengthens both Frutarom’s technological capabilities and its comprehensive product offering to customers around the world in the fields of savory flavors and functional foods. Additionally, it broadens Frutarom’s extensive global customer base by solidifying a presence in the Scandinavian market. We will strive to exploit to the fullest extent the operational synergies in the merger of Rieber with Frutarom’s activities in order to reach the optimal operational efficiencies and maximal savings.”
Press release (pdf)