Frutarom acquires 80% stake in Brazilian taste solutions producer SDFLC
Israel-based flavours and speciality ingredients producer Frutarom has acquired an 80% stake in SDFLC Brasil Indústria E Comércio (SDFLC), a Brazilian manufacturer of taste solutions for desserts.
For this acquisition, Frutraom is reported to have paid R$110m ($33m) that does not include adjustments for debt and working capital, plus future consideration based on SDFLC’s future business performance.
According to the deal, the Israeli firm will have the option to purchase the remaining stake in SDFLC starting 2.5 years after the date of completion of the transaction at a price based on SDFLC’s business performance during this period.
Over the past five years, Frutarom has strengthened its presence in the Latin American market with six acquisitions, and the acquisition of SDFLC is reported to be its third in the Brazilian market.
Frutarom Group president and CEO Ori Yehudai said: "The acquisition of SDFLC is the continuation of the implementation of Frutarom Group's rapid profitable growth strategy and the realisation of its vision 'to be the preferred partner for tasty and healthy success.'
“This is an important strategic acquisition that provides Frutarom with significant reinforcement of its position in the Brazilian market, which is Latin America’s foremost market.
“We will continue working to expand our activity in Brazil and Latin America and other growing emerging markets where our growth engines are focused.”
SDFLC currently has a workforce of nearly 90 employees and provides its services to nearly 2,250 customers in Brazil, which include independent artisan ice cream makers, multinationals, and food processing companies.
SDFLC’s founders and managers Vincenzo Simonetti, Roberto Leardini, Stefano Fioravanti and Claudio Di Caro will continue in their roles, as well as shareholders in the company.
The company is currently in the process of building a new 20,000ft² site that will feature R&D laboratories and an automatic production platform in order double its production capacity without any additional workforce.
The new facility is expected to be completed by next year.