As part of its continual acquisition and growth strategy, Frutarom has acquired 60% of the share capital of flavors and fragrances company Sonarome Private Ltd. (Bangalore, India) —a controlling share of the company—in exchange for a cash payment of $17.2 million (reflecting a value of $28.6 million).
Frutarom's goal is to expand its activity in the emerging high-growth markets of India and Africa, both through internal growth and acquisitions (read more about Frutarom's growing markets in P&F's upcoming June 2015 Leaderboard issue). The acquisition of Sonarome will give Frutarom a local R&D and production platform to help cut delivery time and improve service to customers in the region.
Sonarome, which has manufacturing, marketing, and research and development operations based in India, has extensive flavors and fragrance activity in India as well as about 20 African markets, particularly in Nigeria, South Africa, Ethiopia, Kenya and Mozambique.
Sonarome's sales have grown quickly in recent years at a double-digit annual rate, reaching $12 million in 2014.
The founders of Sonarome, T.S. Gulhati and R Gulhati and N. Gulhati, will continue in their roles with the company as management and shareholders.