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Frutarom Acquires 70% Stake in Nesse
Posted: April 25, 2006
Frutarom (Haifa) has acquired 70 percent of the shares of German firm GewurzMuhle Nesse. The move is intended to boost the company’s savory offerings and technological capabilities, while expanding its presence in the European flavor market, particularly Poland, the Czech Republic, Latvia, and Yugoslavia. The deal includes the option of Frutarom acquiring the remaining 30 percent of shares by the close of 2007. In addition, GewurzMuhle Nesse will continue to be run — in conjunction with Frutarom’s global flavors division management — by the existing management. GewurzMuhle Nesse employs 120 and has two production facilities in Germany, in addition to operations in 20 other countries. The company’s 2004 sales reached 21.4 million euros.
Of the news, Frutarom president and CEO Ori Yehudai said, “We believe that this strategic acquisition is another significant milestone in implementing our rapid growth strategy."
Bill Ludlum, president of Frutarom USA added, “The savory flavors segment is fast growing with an annual rate of 4-6 percent in developed countries and even more in emerging markets where Nesse is active. This growth is largely due to increased consumer demand for convenience foods for snacking and dining at home as well as on the go and in the workplace. The Nesse acquisition complements our ability to bring new ideas to manufacturers of savory products both in the United States and around the world.”