Frutarom has signed an agreement to acquire Mylner Indústria E Comércio Ltda, a Brazilian flavor company, for approximately $ 15.7 million. Founded in 1974, Mylner develops, manufactures and markets flavor solutions, focusing mainly on sweet flavors for beverages and baked goods, and natural flavor products. The Brazilian company has a production and marketing site near São Paulo, including land for future expansion, and it employs some 70 workers to serve food manufacturer customers, which are primarily mainly in Brazil and other developing Latin American countries.
Mylner has shown good growth rates over the past few years, and its sales turnover has increased over the past four years by 43%, from revenues of $6.8 million in 2007 to revenues of $11.4 million in 2011. Also, over the past year, Mylner's sales turnover grew by 8%.
The acquisition is expected to significantly increase Frutarom's customer base, product portfolio and the scope of its sales in the flavors market, while deepening its operations and market share in the growing Brazilian market and in Latin American markets. Frutarom intends to utilize Mylner's production, development, sales and management, capacities as a base for the development of its business in this important developing region.
Ori Yehudai, Frutarom president and CEO, said, “After five acquisitions in 2011, Frutarom continues to pursue additional strategic acquisitions and to implement its rapid growth strategy with this third acquisition since the beginning of 2012. Frutarom considers this acquisition of Mylner to be an important strategic step and a significant first entry into the taste solutions market in the important and large Brazilian market and in Latin American markets, which strengthens its presence and market share in these high growth potential markets. Frutarom will act and invest in the strengthening of its research and development, production, marketing and sales in Brazil and in other important target countries in Latin America also through additional strategic acquisitions in the region, continuing to strengthen its status as a leading global player, and will continue to successfully realize its rapid growth strategy, and the realization of the vision ‘To be the preferred partner for tasty and healthy success.’ ”