Frutarom Industries Ltd. (Haifa), which acquired 56% of the share capital of the flavor company Etol d.d. (Sofia Vas, Slovenia) last year for about $24.9 million, will submit a takeover bid in the Slovenian stock market for the purchase of the remaining shares.
Etol, founded in 1924, posted 2010 revenue of $61 million and has 240 employees. The company develops, manufactures, and markets flavors, particularly natural flavor products for the food and beverage industry. The company develops fruit-based flavors and food systems, specializing in local fruits of the region.
Etol's products are sold to over 46 countries outside of Slovenia, including Russia, Poland, the Ukraine, Turkey, Croatia, Serbia, Belarus, Hungary, Slovakia, Macedonia, the Czech Republic,Kazakhstan and other emerging markets.
"Frutarom considers this an important and strategic acquisition, which significantly expands Frutarom's operations in Central and Eastern Europe and strengthens its presence and market share in these markets, and further positions Frutarom as a leading global player," said Frutarom's president and CEO, Ori Yehudai. "Etol's proven abilities and many years of experience in the flavors field, with its specialization also in natural products in beverage bases, are a strategic asset for Frutarom. We forecast sales growth in the emerging markets in which Etol is active, as a result of the anticipated growth in demand and of changes in consumer preferences for processed foods and beverages. Frutarom proactively acts, and will continue to act, for the acceleration of growth in these emerging markets, by focusing on strengthening of its research and development, manufacturing and marketing and sales capabilities in these important target countries, and through additional strategic acquisitions.
"After five acquisitions in 2011, Frutarom is performing its second acquisition in the first month of 2012, and continues to pursue additional strategic acquisitions and to implement its rapid growth strategy and the realization of the vision 'To be the preferred partner for tasty and healthy success,'" Yehudai continued. "We continue to seek out strategic acquisitions which will bring high added value for our shareholders and implement our rapid growth strategy combining internal profitable growth with strategic acquisitions, which together allow us to achieve our ambitious goals."