Frutarom acquires Flavours and Essences in UK


Israeli flavour and speciality ingredient producer Frutarom has signed an agreement to purchase a 100% stake in Flavours and Essences (F&E), a UK-based firm that develops and markets flavours and natural colours.

The $19.5m deal also includes a mechanism for future consideration based on F&E’s future business performance over a three-year period from the purchase date.

Financed through bank debt, the acquisition is reported to be in line with Frutarom’s growth strategy.

“This acquisition is further reinforcement for our growing activity in the UK where Frutarom holds a leading position in flavours."

Frutarom Group president and CEO Ori Yehudai said: "This is another acquisition of activity in Frutarom’s core field, which will enable us to offer our customers a wider portfolio of solutions.

“This acquisition is further reinforcement for our growing activity in the UK where Frutarom holds a leading position in flavours.

“Frutarom will drive at exploiting to the utmost the cross selling opportunities inherent in this acquisition and will work towards expanding the product portfolio to F&E’s existing customer base.

“In addition, Frutarom will take measures to achieve maximum commercial and operational efficiency from merging F&E’s activity with its own activity in the UK.”

Following the acquisition, F&E’s founding owners and managers will be retained by the company.

Founded in 1998, F&E is involved in the development, production and marketing of flavours and natural colours.

The company has a production facility and an R&D centre in Blackburn, a workforce of more than 40 employees, and a broad customer base in Europe.