Frutarom Industries Ltd. (Haifa, Israel) has announced that it has signed an agreement to acquire the activity of Adumim Food Additives Ltd. for $4.25 million. Adumim has two main fields of activity: development, production and marketing of ingredients and fine ingredients for the food and functional food industries; and development and production of food ingredients containing medicinal plant extracts, vitamins and minerals. Adumim’s sales for 2006 totaled approximately $5.5 million, mostly in Israel.
The acquisition will broaden Frutarom’s product portfolio and the natural, healthful solutions, especially in the fields of food, nutraceuticals and functional food. Adumim’s products, some of which are patented, will be integrated into the range of products produced and marketed by both Frutarom’s Flavors and Fine Ingredient divisions.
Adumim holds 45.8% of the share capital in NutraLease Ltd., which was established by Nissim Garti, one of the founders of Adumim. NutraLease has developed patented nano-encapsulation technology that enables a delivery system through which insoluble materials may be added to foods, beverages, medications and cosmetic products without adversely affecting their quality.
Of the acquisition, Frutarom president and CEO Ori Yehudai said, “The acquisition of Adumim, the fourth acquisition Frutarom has made this year, constitutes the continued implementation of our rapid growth strategy while strengthening the taste and health area as per Frutarom’s vision—To be the preferred partner for tasty and healthy success.”