Frutarom acquires Wiberg for $130m

Israel-based Frutarom Industries has completed its acquisition of Wiberg for approximately $130m.

The acquisition includes complete ownership of Wiberg of Austria and Wiberg of Germany, as well as the purchase of 50% of the shares of a Canadian subsidiary and 51% of a Turkey-based company.

Wiberg sales for 2015 are expected to reach $172m (€155m), with earnings before interest, taxes, depreciation and amortisation (EBITDA) of $19m (€17m).

The acquisition of Wiberg will boost Frutarom’s supply of savoury products, offering its customers worldwide a wide range of products and culinary solutions.

The acquisition will help Frutarom increase its customer base and product portfolio that will create new cross-selling opportunities, leveraging its global sales and marketing infrastructure.

Frutarom will also improve operational synergies between its own activities and those of Wiberg’s to achieve operational efficiencies and maximum annual savings of more than $12m, most of which is expected to be attained in the 2016 and the rest during 2017.

This acquisition is the largest purchase made by Frutarom, boosting the company’s sales target to $2bn in 2020.

Wiberg has expertise in the production of specialty savoury solutions such as seasoning blends, flavour extracts and functional ingredients, as well as processed meats and convenience foods for the food industry.

Wiberg also provides modern culinary solutions for restaurants, catering companies and chefs. It has an R&D centre and advanced laboratories, at its headquarter in Salzburg, Austria.

The largest of the company’s five production sites is in Germany, while the other four are located in Turkey, Canada, Austria and LA.The company has sales and marketing operations in nearly 70 countries, including Europe, North America, Africa and Asia.

In November, Frutarom acquired 75% of the share capital of AMCO, a Polish savoury flavour solutions firm, for $20.7m.