Frutarom Industries Ltd., one of the world's 10 largest companies in the field of flavors and specialty fine ingredients, continues implementing its rapid growth strategy, and announces that it has acquired 100% of the share capital of the Belgian flavors company Taiga International NV in exchange for payment of approximately US $2.9 million. The transaction was completed upon signing the agreement and was independently financed.
Established in 1992, Taiga engages in the development, production and marketing of flavors for the food, beverages and tobacco industries, including to leading chocolate manufacturers, the beverages and tobacco industries of chocolates. The company has 14 employees and serves a broad customer base extending from Europe to North America from its site in Belgium which is home to all its production, research and development, and marketing activities. In 2014 Taiga sales turnover amounted to US $4.9 million.
Frutarom will work towards capitalizing to the fullest on the abundant cross-selling possibilities presented by the acquisition and aims to expand the product line sold to the company's existing customer base. Frutarom will also strive to maximize operational and commercial efficiency from the merging of Taiga's activities with its own activity in Europe based on Frutarom's existing infrastructure and optimization of production sites.
Ori Yehudai, President and CEO of Frutarom Group remarked: "This is an acquisition of activity in the field of flavors, Frutarom's core activity, which boasts high profitability margins. We see significant synergies between Taiga's activity and Frutarom's flavors activity in Europe and intend to leverage the cross-selling opportunities generated by this acquisition both by broadening the product portfolio and expanding the customer base.
"We are continuing to implement our rapid and profitable growth strategy which combines internal growth and strategic acquisitions. The acquisition of Taiga is the third acquisition we are performing this year, and follows the three acquisitions in 2014. Meanwhile, we are continuing to work towards identifying and carrying out further acquisitions of companies and operations in our fields of activity, placing particular focus on markets exhibiting high rates of growth."