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"Citrus specialty remains an important part of our business and is considered an important contributor to our success," said Ori Yehudai, Frutarom president and CEO.
CitraSource, which had 2013 revenue of roughly $7 million, specializes in R&D, manufacturing, marketing and selling solutions in citrus specialty ingredients to the global flavor and fragrances market as well as to the food and beverage industries with capabilities across all ranges of citrus (orange, grapefruit, lemon, lime and tangerine).
The CitraSource assets acquired include a manufacturing facility and a refrigerated tank farm for storing different types of raw materials including citrus specialty and inventory. Frutarom said they will be integrated into Frutarom's global supply chain and production infrastructure and will contribute to the expansion and strengthening of Frutarom's global purchasing system.
CitraSource's managers, Niv Ben Yehuda and Randy Aulick will continue managing CitraSource activity, supporting Frutarom's efforts in growing its global citrus business. Both have extensive experience in R&D, operations, purchasing, sales and marketing of specialized citrus and bring with them extensive worldwide contacts in the global citrus industry.
CitraSource's activity will be consolidated into Frutarom's fine ingredients activity.
"The strengthening of our control over the sourcing of our raw materials (back integration) which CitraSource brings us, will further enhance our leadership position in the market for citrus specialty ingredients and will allow us to expand our product portfolio and provide added value to our customers," said Yehudai.
He added: "CitraSource's brings Frutarom advanced R&D and global sourcing capabilities, in the USA, Central and South America in particular, leading, experienced management team and presence in Florida, one of the world's main citrus centers. This acquisition supports Frutarom's strategy of expanding growing its US activity and developing value-added natural solutions in line with global market trends and with the needs of our flavors, food and beverage customers."
Yehudai also said Frutarom will continue implementing its rapid and profitable growth strategy, which includes acquiring companies synergistic to Frutarom.