HERZLIYA, ISRAEL — Frutarom Industries Ltd. is continuing its acquisition blitz with the purchase of Nardi Aromas Ltda for approximately $1.6 million.
Nardi Aromas, Frutarom’s seventh acquisition of the year, specializes in the development, production and marketing of natural traditional Brazilian flavors and plant-based herbal extracts for the alcoholic drinks and carbonated beverage markets. The Sao Paulo-based company has 14 employees and had sales of approximately $1.5 million in the 12 month period ended Aug. 31, 2016.
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| Ori Yehudai, president and c.e.o. of Frutarom |
“The acquisition of Nardi is the continuation of the implementation of Frutarom Group’s rapid profitable growth strategy and the realization of its vision ‘to be the preferred partner for tasty and healthy success,’” said Ori Yehudai, president and chief executive officer of Frutarom. “This is an acquisition that establishes Frutarom’s presence in Brazil and allows for the expansion of our portfolio of solutions in Brazil for the substantial and growing beverages market based on Nardi’s existing activity with its excess production activity, exploiting cross-selling opportunities and attaining of operational savings and the tapping of synergies made possible with our existing activity in Brazil in the fields of R.&D., sales and marketing, and production. We also see great potential in expanding Nardi’s activity in natural flavors and herbal extracts originating with unique Brazilian raw materials to outside of Brazil as well, incorporating these into Frutarom’s broad portfolio of solutions for beverages and based on our global sales and marketing network and our circle of customers that generate significant cross-selling opportunities.”
Frutarom has been focused on expanding its activity in Latin America, specifically Brazil, in the last few years. In 2012, Frutarom acquired the Brazilian company Mylner, which specializes in sweet flavors for beverages and baked foods, natural extracts from plants and natural flavor products. In 2013, Frutarom acquired Guatemalan company Aroma, a producer of sweet flavors for beverages, dairy products, confectionery and snacks. In 2014, the company acquired the natural flavors and colors division of Montana of Peru, which produces natural flavors and colors for the food industry.
“We intend to continue working to expand our activity in Latin America, with emphasis on the Brazilian market and other key markets in the region,” Mr. Yehudai said. “The acquisition of Nardi is the fourth acquisition we have made in Latin America in the past four years, a period in which we have built a broad sales and marketing infrastructure in most of the Central and South American countries, supported by our local and global production and R.&D. activity. I am convinced that this infrastructure will support the continued rapid growth of our activity in Latin America both by means of organic growth and through additional acquisitions that we intend to evaluate.”
