ANNOUNCES THE ACQUISITION OF VITIVA OF
SLOVENIA FOR APPROX. US$10 MILLION
VITIVA IS ONE OF THE LEADING EUROPEAN
PRODUCERS FOR SPECIALTY NATURAL BOTANICAL EXTRACTS FOR THE FOOD,
HEALTH, AND COSMETIC INDUSTRIES, ALONG WITH GROWING ACTIVITY IN
NATURAL FOOD COLORS
Vitiva has a cutting-edge plant and top notch
personnel with impressive R&D capabilities
Frutarom Industries Ltd. ("Frutarom")
(OTCBB:FRUTF) (TASE:FRUT), one of the world's 10 largest companies
in the field of flavors and specialty fine ingredients, continues
its momentum of acquisitions and the implementation of its strategy
for rapid and profitable growth: the Company today announced the
signing of 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. Among its
customers are some of the world's top food, pharmaceuticals, and
cosmetics manufacturers. Vitiva's 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 many years of experience and excellent
capabilities in extracting active elements from plants
(particularly rosemary, olive and citrus, among others) and this
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 R&D abilities and a pool of knowledge
based on longstanding 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
this past September, 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.
Vitiva has an R&D, marketing and sales center and
a modern, efficient production site in Slovenia with large output
capacity along with the possibility for significant expansion.
Vitiva has 61 employees, including 10 engaged in research and
development (of these, 8 holders of PhD degrees) with expertise in
the field of antioxidants, plant extracts and natural colors.
Frutarom will work towards capitalizing on the many
cross-selling opportunities inherent in this acquisition and
bolster the substantial ongoing development and expansion of its
activity in natural functional solutions which combine taste and
health and provide Frutarom a key competitive advantage. Active
antioxidant ingredients are an important complementary product to
food manufacturers, including producers of processed meat, and
Frutarom will include these specialty ingredients in the overall
portfolio of products and solutions offered to its customers. In
2007 Frutarom acquired RAD which specializes in natural extracts
with antioxidant activity from oregano, and the current acquisition
expands on and supplements the solutions offered to thousands of
customers in this field.
Ori Yehudai, President and
CEO of Frutarom Group, said today: "Frutarom is a leading
global producer of natural specialty fine ingredients and acquiring
Vitiva fits in well with our rapid and profitable growth strategy
which is based on natural flavor and health products.
"The acquisition of Vitiva brings Frutarom advanced
R&D capabilities and a top-rate experienced management team.
The acquisition represents another milestone in carrying out
Frutarom's rapid and profitable growth strategy while broadening
our portfolio of natural products and solutions at this important
crossroads of consumer preference for healthier, more natural, and
tastier products making inroads in the worldwide food, health and
cosmetics industries. Thanks to Frutarom's proven experience in
successfully executing acquisitions and capitalizing on the
inherent synergetic opportunities arising from combining the
acquired activity with Frutarom's activities and the many
cross-selling opportunities, we are convinced that this acquisition
will also contribute towards Frutarom's continued rapid and
profitable growth and generate value for our customers, our
employees, and our investors."
The CEO of Vitiva, Mr. Ohad Cohen,
said: "We are proud to be joining the Frutarom family. Following
the acquisition, Vitiva will be able to enjoy many development and
growth opportunities stemming from combining both companies'
R&D and scientific and technological expertise, expanding the
product range, and from Vitiva's ability to substantially boost its
marketing capability by virtue of Frutarom's global infrastructure
while continuing to extend excellent service to its customers
throughout the world. I have no doubt that Frutarom is the best
home for Vitiva."
Mr. Yehudai concluded in saying: "The acquisition of
Vitiva is the third acquisition we have performed this year, and we
are striving to identify and execute further strategic acquisitions
of companies and operations in our fields of activity. We will
continue implementing our rapid growth strategy which is based on
combining profitable internal growth and strategic
acquisitions."
About Frutarom:
Frutarom is a multinational company operating in the
global flavors and fine ingredients markets. Frutarom has
significant production and development centers on four continents
and markets and sells over 31,000 products its products to over
15,500 customers in more than 145 countries. Frutarom's products
are intended mainly for the food and beverages, flavor and
fragrance extracts, pharmaceutical, nutraceutical, health food,
functional food, food additives and cosmetics industries.
Frutarom, which employs approximately 2,900 people
worldwide, has 2 main core activities:
- The Flavors Activity which develops, produces and markets
flavor compounds and food systems.
- The Specialty Fine Ingredients Activity, which develops,
produces and markets natural flavor extracts, natural functional
food ingredients, natural pharma/nutraceutical extracts, natural
algae based biotechnical products, aroma chemicals, essential oils,
unique citrus products, natural gums and stabilizers. The Specialty
Fine Ingredients products are sold primarily to the food and
beverages, flavor and fragrance, pharmaceutical/nutraceutical,
cosmetics and personal care industries.
Frutarom's products are produced at its plants in the
US, UK, Russia, Switzerland, Germany, Slovenia, Turkey, Italy,
Israel, China, Guatemala, South Africa, Peru, Chile and Brazil. The
Company's global marketing organization encompasses branches in
Israel, the US, UK, Switzerland, Germany, Slovenia, Belgium, the
Netherlands, Denmark, France, Italy, Hungary, Romania, Russia,
Ukraine, Poland, Kazakhstan, Belarus, Turkey, Brazil, Mexico,
Guatemala, Costa Rica, Peru, Chile, South Africa, China, Japan,
Hong Kong, India and Indonesia. The Company also works through
local agents and distributors worldwide.
For further information, visit our website:
www.frutarom.com.
CONTACT: Yael Fainaro, VP Strategy and IR
ir@frutarom.com
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