FRUTAROM ACQUIRES AMCO OF
POLAND SPECIALIZING IN UNIQUE SAVORY
SOLUTIONS
Frutarom Industries Ltd. ("
Frutarom"), one of the
world's 10 largest companies in the field of flavors and specialty
fine ingredients, continues the momentum of acquisitions and
implementing its rapid and profitable growth strategy: the Company
announces today the signing of an agreement to purchase 75% of the
share capital AMCO Sp. z o.o. ("
AMCO") of Poland
for USD 20.7 million (82.25 million PLN). The purchase
agreement includes an option for acquiring the remaining balance of
shares starting two and a half years from the closing date of the
transaction at a price based on the company's business performance.
The transaction will be financed using bank debt and will be
completed within the next few weeks.
AMCO, founded in 1998, has an R&D and sales
and marketing center along with an efficient and modern
state-of-the-art production site in Warsaw, Poland with large
production capacity and significant room to expand. AMCO employs a
staff of 70, including 12 engaged in R&D with advanced academic
degrees. AMCO's main activity is the development, production and
marketing of unique and innovative savory flavor solutions (the
non-sweet spectrum of flavors) that include seasoning blends,
marinades, and functional ingredients for the food industry. AMCO
sales in the 12-month period ending September 2015 reached
approximately USD 19.5 million (approx. 71 million PLN).
The worldwide market for savory flavors is
growing due to the rise in standard of living and changes in
lifestyle and consumer habits, leading to rising demand for
processed and convenience foods both for home consumption and when
eating out. Frutarom views the field of savory flavors as an
important strategic growth engine and in 2006 began substantially
expanding in this field through the acquisition of the savory
activities of the Nesse group, Gewurzmueller and Christian Hansen
in 2006, 2007 and 2009 respectively, the acquisition of EAFI and
the savory activities of Rieber and of FSI in 2011, the acquisition
of Savoury Flavours in 2012, the acquisition of 75% of the Russian
company PTI in 2013, and the acquisitions of FoodBlenders in the UK
and of BSA in Canada in 2015. Frutarom sees great importance for
this field, in which it now holds a leading position in Europe and
invests heavily in developing unique innovative natural and healthy
products with high added value at its sites throughout the world.
The activity of AMCO is synergetic to a large extent with
Frutarom's global savory activity and will enable Frutarom to
reinforce its supply of products in the field of savory and to
continue expanding and deepening its activity and market share in
Poland and neighboring countries. Poland, with its population of 38
million, is a growing central country in Europe and considered one
of the largest consumer markets there, with a stable economy and
strong industrial sector. The country has a large and efficient
food industry which manufactures finished food products also for
Western, Central and Eastern European markets. Growth rates in
Poland in recent years have reached approx. 4% and, according to
forecasts by analysts, the Polish market is expected to grow by
4-5% annually in upcoming years, a much higher rate of growth than
expected for Western Europe.
The company's founders who have been running
AMCO successfully will continue in their managerial roles with the
company and as shareholders.
Ori Yehudai, President
and CEO of Frutarom Group, said: "The acquisition of AMCO
is the continuation of Frutarom Group's implementation of its rapid
growth strategy and the realization of its vision 'to be the
preferred partner for tasty and healthy success.' This is a key
strategic acquisition that solidifies Frutarom's position as one of
the world's top companies for flavors, and reinforces its presence
and standing as a leading global producer of natural, healthy and
innovative savory solutions. The acquisition constitutes a
significant entry into the important and expanding Polish market
where Frutarom is gaining a modern state-of-the-art production
site. As a global manufacturer, this acquisition provides Frutarom
the advantages of possessing a local R&D and production
platform for shortening delivery times and improving customer
service in the region. In the future, AMCO's R&D labs and
modern state-of-the-art plant will also help boost Frutarom's
activity in Poland in the field of sweet flavors.
"Thanks to Frutarom's proven experience carrying
out acquisitions and capitalizing on the abundant synergies and
cross-selling opportunities inherent in merging the acquired
activity with those of Frutarom Group, we are certain that this
acquisition too will contribute to the continuation of Frutarom's
rapid and profitable growth and generate high value for our
customers, employees and investors," said Mr.
Yehudai. "Frutarom intends to utilize and combine AMCO's
R&D, sales and marketing infrastructure and production and
supply chain platform in Poland together with Frutarom's R&D,
sales, marketing and manufacturing infrastructures and platforms in
order to realize and leverage the many cross-selling possibilities
created by this acquisition by expanding both the customer base and
the product portfolio, and to capitalize on the operational
synergies between AMCO's activity and the activities of
Frutarom.
"Frutarom considers the field of savory flavors
a key strategic growth engine and the AMCO acquisition, following
its previous acquisitions in this field, is a further step towards
reinforcing Frutarom's leadership in this important field and we
intend to continue investing towards substantially expanding our
savory flavor activities in additional countries around the globe,
including through acquisitions," added Mr.
Yehudai. "We have recently started up operations at our
new modern plant in China which is also capable of producing savory
products and is designed to provide a response to customer needs in
this field in the Asian market."
Mr. Yehudai concluded by
saying: "We are continuing to implement our rapid and profitable
growth strategy. The acquisition of AMCO is our eleventh this year
and we continue to seek out and perform further strategic
acquisitions of companies and operations in our fields of activity,
with special focus on activities and markets exhibiting high rates
of growth. We will continue implementing our rapid growth strategy,
which is based on combining profitable internal growth and
strategic acquisitions, towards attaining the goals we recently set
for ourselves: Sales of at least USD 1.5 billion with an EBITDA
margin of over 22% from our core activities by the year 2020."
About Frutarom:
Frutarom (LSE:FRUT) (TASE:FRUT) 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 the
over 43,000 products it produces to over 19,000 customers in more
than 150 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 3,500
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
food colors, natural algae based biotechnical products, natural
antioxidants used in natural food protection systems, aroma
compounds, essential oils, unique citrus products, natural gums and
resins. 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, Canada, the UK, Switzerland, Germany, Belgium, Italy,
Spain, Slovenia, Russia, Turkey, Israel, South Africa, China,
India, Guatemala, Peru, Chile, Brazil and New Zealand. The
Company’s global marketing organization encompasses branches in
Israel, the US, Canada, the UK, Switzerland, Germany, Slovenia,
Belgium, the Netherlands, Denmark, France, Italy, Spain, Hungary,
Romania, Russia, the Ukraine, Poland, Kazakhstan, Belarus, Turkey,
Brazil, Mexico, Guatemala, Costa Rica, Peru, Chile, South Africa,
China, Japan, Hong Kong, India, Indonesia and New Zealand. The
Company also works through local agents and distributors throughout
the world. For further information, please visit our website at:
www.frutarom.com.
Contact Details:
ir@frutarom.com +972-9-9603800
CAC Utilities (EU:FRUT)
Graphique Historique de l'Index
De Nov 2024 à Déc 2024
CAC Utilities (EU:FRUT)
Graphique Historique de l'Index
De Déc 2023 à Déc 2024