Frutarom Completes Etol Takeover Bid

HAIFA, IsraelFrutarom Industries Ltd. announced its successful takeover bid of Slovenian flavors manufacturer Etol d.d. ("Etol") for 34.6 million, a move that further strengthens Frutaroms presence in emerging markets and expands its natural flavors portfolio. Frutarom now holds 97.6% of Etols shares. Over the next few weeks Frutarom will act to delist Etol from the Slovenian Stock Exchange and to acquire the balance of shares in Etol from the remaining shareholders.

Etol develops, manufactures and markets flavors, focusing on natural flavor products for the food and beverage industry. Etol also develops fruit-based flavors and products and food systems, specializing in local fruits of the region, as well as extensive activities in the growing area of bases for beverages that Frutarom has identified as a strategic area for the company, and in which it plans to further invest in order to substantially expand its activity.

Etol's products are sold to more than 47 countries outside of Slovenia, to a wide customer base in Central and Eastern Europe and in emerging markets, including Russia, Poland, the Ukraine, Turkey, Croatia, Serbia, Belarus, Hungary, Slovakia, Macedonia, the Czech Republic, Kazakhstan and other emerging markets characterized by higher than average growth rates in comparison with the world average market growth.

The acquisition is synergetic with Frutaroms activities, and is expected to significantly increase Frutaroms customer base and scope of sales in emerging markets in Central and Eastern Europe, expand its product portfolio and deepen its operations and market share in these important markets. Etols development, sales and production capacities will serve to further develop Frutaroms businesses in the region.

Commenting on the transaction, Frutaroms President and Chief Executive Officer, Ori Yehudai, said: Frutarom considers this an important and strategic acquisition, which significantly expands Frutaroms operations in Central and Eastern Europe and strengthens its presence and market share in these fast-growing markets, and further positions Frutarom as a leading global player. Etols proven abilities and many years of experience in the flavors market, with its specialization in natural products in beverage bases, are a strategic asset for Frutarom. We welcome Etols experienced and professional team to the Frutarom family, and will act to create value from the many cross-selling opportunities created as a result of the acquisition, the operational efficiency opportunities it offers and from the expansion of our operations in Central and Eastern European markets.