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Frutarom’s Third Acquisition in 07
Posted: June 6, 2007
Frutarom (Haifa, Israel) has announced that it has signed an agreement to acquire 100% of the share capital of the Israeli company Raychan Food Industries Ltd. Frutarom will pay $1.05 million and assume Raychan’s debt in the amount of $1.23 million. Raychan’s sales for 2006 reached about $5.5 million, mostly in Israel. Completion of the transaction is subject to the final approval of the Israeli Anti Trust Commissioner, which is expected to be received within three months.
Raychan markets, develops and produces flavor compounds and markets ingredients for the food industry. Its products will be integrated into the product range produced by Frutarom’s Flavors Division. The company intends to sell Raychan’s products to Frutarom’s existing customers in markets where Raychan was less active, such as Eastern Europe and Turkey. The acquisition will strengthen Frutarom’s technological capabilities and its research and development infrastructure, especially in the field of savory flavor compounds. In addition, Frutarom’s personnel will benefit from the addition of Raychan’s employees; Raychan’s management will be integrated into Frutarom’s management in Israel.
Of the acquisition, Frutarom president and CEO Ori Yehudai said, “The acquisition of Raychan is the third by Frutarom this year, following the acquisitions of the English companies Belmay and Jupiter, and continues the implementation of the Frutarom Group’s rapid growth strategy. The acquisition further supports Frutarom’s strength and position; Frutarom is already one of the 10 largest companies in the world in the field of flavors and fragrances. Frutarom intends to continue acting to realize and utilize the considerable synergy—both commercial and operational—existing between Frutarom and Raychan’s activities in order to achieve optimal use of the cross selling opportunities and the greatest saving in expenses.”