Frutarom acquires Unique Flavors of South Africa
Frutarom Industries Ltd. (“Frutarom”), one of the world’s 10 largest companies in the field of flavors and natural specialty fine ingredients, continues its momentum of acquisitions and the implementation of its rapid and profitable growth strategy.
Frutarom Industries Ltd. (“Frutarom”), one of the world’s 10 largest companies in the field of flavors and natural specialty fine ingredients, continues its momentum of acquisitions and the implementation of its rapid and profitable growth strategy: The Company announces that today it signed an agreement for the purchase of Unique Flavors (Pty) Limited of South Africa (“Unique”) in consideration (including the taking on of debt) for approx. USD 6.7 million (ZAR 90 million). The purchase agreement includes a mechanism for future consideration based upon Unique’s future business performance. The transaction was completed upon the signing of the agreement and was financed through bank debt.
Unique’s sales volume in the 12 months ending January 31, 2017 amounted to approx. USD 9 million (approx. ZAR 131 million).
Unique, which was founded in 2001, engages in the development, production and marketing of flavors, with emphasis on savory flavors (the non-sweet spectrum of flavors) and on sweet taste solutions. Unique, which has grown in recent years at a rapid pace, has an R&D, production and marketing site in Pretoria, South Africa, near Frutarom’s new South African site, and a wide customer base in South Africa and other important emerging markets of the Sub-Saharan region like Ghana, Malawi, Zimbabwe and Mozambique. Unique has a workforce of 64 people and its activity is synergetic to Frutarom’s flavors activity in Africa which has grown in recent years at a substantial pace surpassing the rate of market growth.
Frutarom will work towards merging the activities, including combining the R&D, sales and marketing, purchasing, production and supply platforms. The management of Unique, headed by the activity’s CEO, shall be integrated into Frutarom’s management in Africa, and together they will work towards accelerating Frutarom’s growth in the region.