Frutarom (Haifa) has acquired Chr. Hansen Group's Germany-based savory functional systems business for $7.3 million. Last year the unit posted sales of $7.7 million. This represents Frutarom's third purchase of the year.
The purchase adds expertise in the processed meat (industrial meat customers) and convenience food segments, including flavors, seasoning compounds, functional ingredients and a production site in Holdorf, Germany, and boosts Frutarom's presence in Germany, Scandinavia and the United Kingdom. The Holdorf location will be shuttered and its activities moved to Frutarom's Nesse site.
Of the announcement, Ori Yehudai, Frutarom's president and CEO, said, "[W]e are convinced that this acquisition will benefit Frutarom's continued fast growth and profitability and will create added value for our customers, our employees and our investors. Frutarom will act to extract the greatest advantage from the operational synergy between its activities and the acquired activity in Germany and elsewhere to achieve optimal operational efficiency and maximal savings, which will be achieved in a short period of time due to the closing of the production site in Holdorf and transferring the activity to our existing sites in Germany. Above and beyond the extensive synergy existing in the German market, there is synergy between the acquired activity and Frutarom's activity in additional countries, particularly in Scandinavia and UK. Frutarom will continue to implement its rapid growth strategy."