Frutarom Industries Ltd. has signed an agreement to purchase the shares of Vitiva of Slovenia (Vitiva) for a cash payment of approximately US$10 million.
The transaction will be completed over the coming weeks.
Vitiva specializes in the research and development, production, marketing and sales of specialty natural extracts from plants exhibiting antioxidant activity or scientifically proven health attributes backed up by clinical studies and of natural colors for customers in the food, pharmaceutical, nutraceutical, and cosmetics markets. Its revenues have grown from US$8.7 million in 2013 to approximately US$11 million for the 12-month period ending November 2014 (27% increase).
Its activity will be integrated within the framework of Frutarom’s specialty fine ingredients division.
Vitiva has been extracting active elements from plants (particularly rosemary, olive and citrus, among others).
Such capabilities will help Frutarom expand its portfolio of natural products for the food industry as well as in the fields of health and cosmetics.
In addition, Vitiva has research and development abilities and a pool of knowledge based on research for continuing to expand its current product portfolio and toward entry into other fields such as the field of pet food and livestock feed preservation.
Combining these abilities with Frutarom’s capabilities in the field of antioxidants, particularly in the area of food preservation and protection and lengthening shelf life based on natural ingredients, will even further strengthen Frutarom’s position as a leading player in R&D, production, and sales for these types of solutions.
The natural food colors activity will join the natural food colors activity by Montana Food which was acquired by Frutarom in September 2014, advancing the implementation of Frutarom’s strategy of penetration into this burgeoning field with the intention of continuing to invest in a major expansion of its global activity in this growing area.