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Frutarom Acquires UK-based EAFI
Posted: January 24, 2011
Frutarom (Haifa, Israel) has signed an agreement to acquire British East Anglian Food Ingredients Ltd. (EAFI) for approximately US$4.8 million through a self-financed deal that Frutarom expects to complete within a number of weeks. EAFI is the developer and manufacturer of savory taste products, including flavors, seasoning compounds and functional ingredients, with a specialization in convenience food, snacks, and processed meat and fish, and included in the acquisition agreement is EAFI’s UK-based operational facility, which houses its R&D, marketing and manufacturing capabilities. This acquisition is line with several Frutarom has made in recent years, including the savory activities of Chr. Hansen, Gewurzmuller, Nesse and, most recently, Rieber.
According to Frutarom president and CEO Ori Yehudai, "The acquisition of EAFI 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 flavors in general and of savory solutions in particular. It strengthens both Frutarom's technological capabilities and its comprehensive product offering to our customers in the fields of savory flavors and functional foods around the world. The acquisition of EAFI will allow Frutarom to widen its global customer base via a stronger entrance into the UK market. Frutarom is the leading local flavor manufacturer in the United Kingdom; however, until now our main focus in that market has been on the sweet spectrum of flavors. The addition of EAFI rounds out the Frutarom portfolio, increasing the range of solutions that we can offer to food manufacturers in the United Kingdom. The global market for savory flavors is growing as a result of trends in improved quality-of-life and changes in consumer behavior. Accordingly, the consumption of processed and convenience foods has grown both inside and outside of the home. Frutarom has identified the savory sector as an important growth engine and is investing in the development of unique and innovative products of high added value in its sites around the world."