HAIFA, ISRAEL — Frutarom Industries Ltd. has acquired U.K.-based Aromco Ltd. for $25 million. Aromco makes sweet and savory flavors for the beverage, dairy, confectionery, bakery and savory markets, and it has annual sales of about $13 million.
“The acquisition of Aromco, which is active and growing extensively in developing markets, complements our strategy and strengthens our presence and market share,” said Ori Yehudai, president and chief executive officer of Frutarom. “Aromco’s activity in the U.K. market will be merged with Frutarom’s existing successful activity in which Frutarom is already considered a leading player. We will strive to maximize the numerous synergies among the different activities of Frutarom by utilizing the operating synergies in the different countries to accelerate the cross-selling opportunities and to achieve significant efficiencies and savings.”
Mr. Yehudai added Frutarom’s stable capital structure will enable the company to continue to carry out additional strategic acquisitions.
The Aromco acquisition is the fourth such transaction completed by Frutarom since the beginning of the year. Earlier, Frutarom acquired the savory business of Chr. Hansen in Italy, the activity and assets of British East Anglian Food Ingredients Ltd., and the activity and fixed assets of Rieber Industrial Spices Savory of Rieber & Son ASA.