Israel's Frutarom acquires French flavours company René Laurent
Israel-based Frutarom has agreed to purchase of French flavour and ingredients producer René Laurent for €20m.
Financed through bank debt, the transaction was completed after both parties signed the agreement.
Established in 1885, René Laurent has been engaged in development and production of flavours and natural extracts.
René Laurent owns two manufacturing facilities that focus on the manufacture of sweet and savoury flavours.
It has a research and development centre near Cannes, France, and a production plant in Casablanca, Morocco, that is engaged in natural herbal extracts, which is used in the field of natural flavours and antioxidants.
With approximately 100 employees, René Laurent has a broad client-base in Europe, Asia and French-speaking countries in Africa, including Morocco, Cameroon and Ivory Coast.
Frutarom Group president and CEO Ori Yehudai said: "The René Laurent acquisition is the first acquisition in the field of flavours made by Frutarom in the large and important French market, and its first acquisition of a factory for plant extracts in Morocco.
“We intend to unite René Laurent’s R&D and sales and marketing platforms, in both the areas of sweet flavours and of savoury, with Frutarom’s European R&D and sales and marketing platforms in order to realise and leverage the abundant cross-selling opportunities between their activities and to capitalise on the many synergies brought about by combining René Laurent’s activity with Frutarom’s substantial existing activity in Europe.
“René Laurent’s R&D and sales and marketing platforms in Asia and Africa will be combined with Frutarom’s platforms."
The deal will see René Laurent factory in Casablanca integrated into Frutarom’s natural extracts operations so that the latter can benefit from the competitive cost structure and geographic proximity to the agricultural development areas.
René Laurent owners and managers Thierry and Jean Louis Laurent would help in the growth of both companies.