Frutarom to acquire Montana’s flavours and natural food colours division

Frutarom Industries is set to acquire Montana Food, the flavours and natural food colours division of Peru-based Montana, for approximately $28.5m.

The deal also includes the acquisition of Montana Food operations in Chile, for no further consideration.

Over the next few days, the firms will sign purchase agreements, with the transaction process expected to be completed in the coming weeks.

The deal is in line with Frutarom’s strategy to expand its growing operations in Central and South America through organic growth and acquisitions.

Frutarom Group president and CEO Ori Yehudai said: "The acquisition of Montana Food is the continuation of the implementation of Frutarom Group’s rapid growth strategy and [goes] towards realising its vision to be the preferred partner for tasty and healthy success.

"The access to leading food and beverage industry customers in South America, as well as Montana Food’s capable staff and product portfolio, will help us strengthen and solidify our standing in the region’s flavours and natural colours markets and allow us to expand our offering of innovative products and the added value we provide customers throughout the world."

Montana Food has a research and development (R&D), sales and marketing centre, and a modern production facility in Lima, Peru. It also maintains an R&D and marketing centre in Chile.

The company employs approximately 250 people in Peru and 30 in Chile. Its customers include leading global food, beverages and flavour companies, as well as manufacturers in South America and Central America.

The latest acquisition is the sixth for Frutarom in emerging markets since 2012. It acquired Guatemalan Aroma in 2013 and the Brazilian flavours company Mylner in 2012. The company has also developed a new R&D laboratory and a sales and marketing network in Costa Rica.