Frutarom (Haifa, Israel) will boost its flavor and botanical extracts activities in North, Central and South America following its agreement to acquire Flavors Specialties Inc. (FSI; Corona, California) for $17.2 million. FSI's 2008 sales totaled ~$11.5 million. The move is part of a rapid expansion program that seeks to capitalize on Western market growth of 9%, according to an official release. Meanwhile, Frutarom notes that the global economic crisis will likely spur further strategic acquisition opportunities.
Of the announcement, Ori Yehudai, president and CEO of Frutarom, said, "This acquisition ... is an important strategic acquisition that implements our plan to strengthen Frutarom's geographical presence in the flavors field in the American continent[s], and mainly in the US, and supports the further strengthening and positioning of Frutarom, which is already today one of the 10 largest companies in the world in the flavors field."