Frutarom Industries Ltd. has signed an agreement to acquire the savory activity and assets of Chr. Hansen Italy for a cash payment of approximately $35.2 million.
Frutarom Industries Ltd. has signed an agreement to acquire the savory activity and assets of Chr. Hansen Italy for a cash payment of approximately $35.2 million. The activity’s 2010 sales totaled approximately $24.3 million. The acquisition will be subject to the approval of antitrust authorities. Frutarom estimates that the acquisition will be finalized within the coming weeks.
The savory activity of Chr. Hansen develops, produces, and markets savory solutions including flavors, seasoning compounds, and functional ingredients for the food industry, with special emphasis on processed meat and convenience food applications. The acquired activity has a customer base comprised mainly of Italian meat processors, but also sells to Russia, Ukraine, Poland, Czech Republic, and France. The acquisition will provide Frutarom a presence in Italy where the company’s local presence has been slight, and will serve as a platform on which to expand into this market.
Included among the assets purchased is a high-capacity plant located in Parma, Italy, which will enable Frutarom to increase its activities and to take advantage of operational synergies with its existing savory activities in Europe. Also included among the assets are R&D laboratories. The 45 employees at Chr. Hansen’s savory business will join the Frutarom workforce.
“The acquired activity holds significant market share in the fields of savory flavors and processed meat in Italy, and it will strengthen Frutarom’s positioning among these customers while significantly increasing Frutarom’s local presence and market share in this important market. The acquisition considerably boosts 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,” said Ori Yehudai, President and CEO of Frutarom.