Frutarom Acquires Nutrafur Of Spain Which Engages In Specialty Natural Plant Extracts For Food And Health Products

Frutarom Industries Ltd. ("Frutarom"), one of the world's 10 largest companies in the field of flavors and specialty fine ingredients, continues its momentum of acquisitions and the implementation of its rapid and profitable growth strategy: the Company announced the purchase of 79 % of the shares of the Spanish company Nutrafur S.A. ("Nutrafur") based on a company value of approx. US$ 14.5 million (€ 13.1 million). The transaction was completed upon signing and is being financed with bank credit. Nutrafur specializes in the research and development, manufacture, and sales and marketing of specialty natural plant extracts bearing antioxidant properties or scientifically proven healthy qualities and supported by clinical studies for the food, pharma, nutraceutical and cosmetics markets. Nutrafur sales for the 12-month period ending June 2015 amounted to approx. US$ 13 million. The value of Nutrafur's net assets for 30.6.15 on a cash-free debt-free basis stood at approximately US$ 11.4 million.

Nutrafur has accumulated many years of know-how and excellent capabilities in the extraction of active components from vegetation, particularly rosemary, olive and citrus. Nutrafur products blend in well with Frutarom's portfolio of natural ingredient solutions and will help expand Frutarom's lineup of natural products for both food and health products. Nutrafur's activity in the field of antioxidants, particularly in the area of food preservation and protection and extending of shelf life based on natural components, establishes even further Frutarom's portfolio of solutions in this field which has been significantly strengthened following its acquisitions earlier this year of Vitiva and Ingrenat which are also active in this growing field. Active antioxidant ingredients constitute an important supporting product for food manufacturers, and Frutarom will integrate these specialty ingredients into the comprehensive portfolio of products and solutions offered to its many customers in the savory field as well. Frutarom will work towards capitalizing on the many cross-selling opportunities arising from the acquisition and supporting the continued rapid development and production of natural functional solutions that combine taste and health in response to consumer demand and the major trends in the global food market towards more natural and healthier foods. This field is growing by leaps and bounds, and Frutarom's unique capabilities give it a competitive edge.

Nutrafur has an R&D and sales center and an efficient manufacturing site in Murcia, Spain with large production capacity and the possibility for considerable expansion. The company has 67 employees, of which about 10 are engaged in R&D and have advanced academic degrees and expertise in various fields.

Nutrafur's production site is in close proximity to that of Ingrenat which was acquired during the first quarter this year, and this geographic proximity between the sites will provide maximum operational flexibility in terms of the use of various extraction technologies as well as use of the various manufacturing systems within the framework of optimizing Frutarom's global supply chain. The acquisition will allow for significant operational savings in Frutarom's global manufacturing structure in the area of natural extracts and in the fields of purchasing, production, logistics, and marketing of the Company's solutions in these fields.

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