Frutarom Acquires Abaco

HAIFA, Israel—Frutarom’s subsidiary Frutarom USA inked a deal on July 3 to acquire Abaco (Abaco Manufacturing LLC and Abaco Inc.), a privately-owned company located in Eastanollee, Ga., for $4 million and assumption of Abaco’s $1.1 million in debt. Abaco’s sales in 2006 totaled approximately $3.2 million. Abaco develops, produces and markets unique ingredients for the flavor and fragrance industry and, according to Frutarom, has synergetic activities with those of Frutarom’s Fine Ingredients Division. The acquisition is expected to enhance Frutarom’s activities in the United States, which is a strategic market for Frutarom, and to expand the product line offered by the Fine Ingredients Division to its customers both in the United States and globally. “The acquisition supports Frutarom’s continued strengthening and positioning, especially in the American market, which is an extremely important goal for us,” said Ori Yehudai, president and CEO, Frutarom (www.Frutarom.com). “Frutarom will immediately integrate Abaco’s activities with that of Frutarom USA, while realizing and utilizing the extensive commercial and operational synergy that exists between Frutarom’s and Abaco’s operations in order to take maximum advantage of the cross selling possibilities while achieving maximum cost savings.”