Frutarom Acquires IFFs European Fruit Preparation Business

Frutarom Acquires IFFs European Fruit Preparation Business

TEL AVIV, IsraelFrutaromIndustries Ltd. (NASDAQ:FRUTF) completed its acquisition of InternationalFlavors & Fragrances Inc.s (IFF) Fruit Preparations business in Germanyand Switzerland for EUR30 million ($36.5 million) less certain liabilitiesassumed by Frutarom.

The acquired Fruit Preparations business includes activitiesat modern plants in Emmerich, Germany, and Reinach, Switzerland, as well asrelated inventory and intellectual property.

The purchase price also provides an earn out mechanism basedon the results of the acquired business in 2005 and 2006, which allows for anincrease or decrease of the purchase price of up to an aggregate of EUR 3.5million.

IFFs European Fruit Preparations business recorded revenuesof $90 million in 2003, of which approximately 70 percent was in Germany andSwitzerland. Depending on the satisfactory completion of IFFs consultationwith the employees work council in Dijon, France, Frutarom will acquire thefruit preparations business in France.

The Fruit Preparations business develops and produces uniquecompounds of fruit and other natural ingredients used as natural flavormaterials in a wide range of food products.

Frutarom also announced various favorable results for thefirst half of 2004. Sales for this period were $88.5 million, an increase of46.3 percent over the first half of 2003. Also for the first half of 2004,operating profit rose 66 percent to $12.3 million and net profit rose sharply by90.6 percent to $9.3 million.

Frutarom USA Inc. is exhibiting at SupplySide West. For moreinformation, visit www.spectrumingredients.com or Booth #1868 at SupplySideWest.