Frutarom Industries Ltd. has acquired 100% of the share capital of US-based Hagelin for a cash consideration of $52.4 million.
This fourth acquisition in 2013 strengthens Frutarom’s foothold in the US market, which is the world’s biggest flavor market, and accelerates its penetration into the developing and fast growing markets of Central and South America and Africa, which are of high strategic importance to the company.
This acquisition substantially expands Frutarom’s business activity in the growing and profitable beverage flavors sector.
The company has thus completed four acquisitions in 2013, with a total sales turnover of $147 million in 2012, investing a total of $120 million.
It plans to continue to implement its rapid and successful growth strategy that combines organic growth with strategic acquisitions.
Hagelin, established in 1967 and employs 84 people, is engaged in the development, production and marketing of flavors and unique flavor technologies for the food industry, with an emphasis on the growing sector of beverage flavors.
Its sales turnover totaled $24.2 million in 2012, up 7% from 2011.
Hagelin specializes in the development of advanced flavor solutions for the reduction of salt, sugar and calories and improvement of the taste experience.
This acquisition expands Frutarom’s global range of advanced products and technologies, which also covers soft drinks, functional drinks (which offer nutritional value), alcoholic beverages, and savory solutions (the non-sweet spectrum).
Hagelin’s customer base includes food and beverage manufacturers in the US, the UK, and in developing markets such as Central and South America and Africa, which have experienced high growth rates.
It has three research and development, production and marketing sites, two of them in the US (in New Jersey and in Georgia), and one in the UK.
“Today we report our fourth acquisition for 2013. This follows the eight acquisitions between January 2011 and January 2012 that are reflected in our 2013 record results and have taken Frutarom several steps forward in its growth journey,” says president and CEO Ori Yehudai.
“We are convinced that the successful mergers in 2013 of JannDeRee in South Africa, PTI in Russia, Aroma in Guatemala and now Hagelin in the US – will take us another step forward in our business activities and results in 2014 and the coming years.”