Frutarom Industries Ltd. has acquired the flavors and natural food colors division of Peruvian company Montana SA for a cash payment of $5.82 million and the assumption of debt in the amount of $ 6.5 million.
In addition to the Peruvian operations, Frutarom will also acquire, for no further consideration, the Montana Food operations in Chile. Montana Food has assets worth $24.8 million and its sales in 2013 reached $52.5 million. The purchase agreements will be signed within the next few days and the entire transaction will be concluded within the coming weeks.
“We view the Montana Food acquisition with its substantial activity in Peru and Chile, where Frutarom hasn't been active until now, in the field of flavors, as another strategic step that expands our activities in the emerging markets altogether and the growing markets of South America in particular,” said Ori Yehudai, Frutarom’s president and CEO.
