Frutarom Unique Flavors purchased
The purchase agreement includes a mechanism for future consideration based upon Unique’s future business performance. The transaction was completed upon the signing of the agreement and was financed through bank debt. Unique’s sales volume in the 12 months ending 31 January 2017 amounted to around $9 mill.
Unique, which was founded in 2001, engages in the development, production and marketing of flavors, with emphasis on savory flavors (the non-sweet spectrum of flavors) and on sweet taste solutions. The company, which has grown in recent years at a rapid pace, has an R&D, production and marketing site in Pretoria, South Africa, near Frutarom’s new South African site, and a wide customer base in South Africa and other important emerging markets of the Sub-Saharan region like Ghana, Malawi, Zimbabwe and Mozambique.
It has a workforce of 64 people and its activity is synergetic to Frutarom’s flavors activity in Africa which has grown in recent years at a substantial pace surpassing the rate of market growth.
Frutarom will work towards merging the activities, including combining the R&D, sales and marketing, purchasing, production and supply platforms. The management of Unique, headed by the activity’s CEO, shall be integrated into Frutarom’s management in Africa, and together they will work towards accelerating Frutarom’s growth in the region.
The acquisition of Unique is Frutarom’s second acquisition in Africa and follows the acquisition in 2013 of the flavors company JannDeRee which was successfully integrated with Frutarom’s South African activity. In recent years Frutarom has also made efforts at expanding its activity in Africa on the basis of its manufacturing infrastructure and its local and global R&D and marketing capabilities while capitalizing on the synergies generated by the acquisition that had been made. Last year Frutarom inaugurated a modern state-of-the-art production plant and R&D center in Johannesburg, South Africa to serve the growing markets of the region.