Frutarom acquires US-based Grow Company

Israel-based Frutarom Industries, a global flavours and natural speciality fine ingredients company, has acquired the complete shares of US-based Grow Company for $20m.

It is one of the many acquisitions the company has completed in recent years as part of its strategy to boost profits and growth.

The purchase agreement includes a process for future consideration based on the company’s business performance during the year after the purchase date.

Since its foundation in 1977, Grow has accumulated years of experience and unique biotechnological production methods for producing natural nutritious ingredients with healthy qualities.

These healthy ingredients, which improve the body’s absorption of vitamins, minerals and other nutrients, have been scientifically proven and backed up by clinical studies.

Grow’s customers include companies that deal with natural remedies, dietary supplements, functional foods, cosmetics and flavours.

Frutarom Group president Ori Yehudai said: "The acquisition of Grow blends in well with our rapid and profitable growth strategy, deepening and expanding Frutarom’s activity in the growing field of natural speciality dietary supplements and the use of unique technologies in their manufacture.

"We will continue investing in significantly expanding our global activity in this important and growing field, both through strategic acquisitions and by collaborating with universities, research institutes and startup companies for developing innovative, natural ingredients."

This is the 29th acquisition for Frutarom in the last five years.

Frutarom recently signed an investment contract with Algalo Industries to gain exclusive marketing rights for algae products worldwide.

Under the agreement, Frutarom will invest $2.6m in exchange for the allocation of 50% of Algalo’s shares to build a modern biotechnology facility.

Over the last two months, the company also acquired Montana Food in Peru, Vitiva in Slovenia, Nutrafur and Ingrenat in Spain, and CitraSource in the US.