Frutarom Acquires Savoury Flavours for $5.88B

HAIFA, IsraelFrutarom Industries Ltd. has acquired British flavors manufacturer Savoury Flavours (Holding) Ltd. and its subsidiaries (SFL") for $5.88 million. The acquisition allows Frutarom to expand its savory product portfolio and expand activities in developing markets.

Founded in 1999, SFL develops, manufacture, and markets savory taste solutions (the non-sweet taste spectrum), including mainly flavors, seasoning compounds, marinades and sauces, specializing in snacks and convenience foods. SFL has a development, manufacturing and marketing site in the United Kingdom and a wide customer base, including food manufacturers and private label manufacturers in the United Kingdom and emerging markets. SFLs production site is located close to EAFIs production site (acquired by Frutarom on Feb. 1, 2011), which also manufacturers savory products. Mark Towler, managing director and founder of SFL, will continue to manage the business.

Frutaroms Savory worldwide activities have increased significantly over the past few years following the acquisition of Nesse, Gewurzmuller and Ch. Hansen, acquired by Frutarom in 2006, 2007 and 2009 respectively, and the acquisition of EAFI, the savory activities of Rieber and of Ch. Hansen and FSI in 2011.

Commenting on the acquisition, Frutaroms President and CEO Ori Yehudai said: After five acquisitions completed in 2011, Frutarom is opening 2012 with an additional acquisition, which continues to strengthen its activities in the savory segment in Europe and in developing markets. This is an additional step toward strengthening Frutaroms position in the U.K. market, where Frutarom in currently a leading sweet flavors manufacturer. The global market for savory flavors is growing as a result of trends in improved quality of life and changes in consumer behavior, causing increased demand for processed and convenience foods. Frutarom has identified the savory segment as an important growth engine and is investing in the development of unique and innovative high added value products at its sites around the world. The acquisition of SFL, following previous acquisitions, is an additional step toward strengthening Frutaroms leadership in this important segment, and we intend to continue to invest in the substantial expansion of our activities in the savory segment in additional destinations throughout the world, including through further acquisitions."