Frutarom Industries Ltd. (Israel, Haifa) has signed an agreement to acquire the Savory activity and assets of Chr. Hansen for a cash payment of approximately 25 million €.
This acquisition is an additional step in establishing Frutarom's leading European position as a savory solutions provider. The company estimates that the acquisition will be finalised within the coming weeks, after being approved by antitrust authorities.
The Savory activity of Chr. Hansen develops, produces and markets innovative savory solutions including flavours, seasoning compounds and functional ingredients for the food industry, with special emphasis on processed meat and convenience food applications. It is a leader in savory solutions, with an extensive customer base comprised mainly of the leading Italian meat processors, and also enjoys export sales in Russia, Ukraine, Poland, the Czech Republic and France. Chr. Hansen Savory activity’s sales totaled approximately 18.3 million € in 2010, and its operating margin was 15%.
The acquisition will provide Frutarom with a substantial presence in Italy and will serve as a platform from which to expand into this important market. According to President and Chief Executive Officer of Frutarom, Ori Yehudai: “The acquired activity holds significant market share in the fields of savory flavours and processed meat in Italy, and it will strengthen Frutarom’s position among these customers while significantly increasing our local presence and share in this important market. The acquisition considerably boosts Frutarom’s technological capabilities and its product offering to customers worldwide in the field of savory flavours and functional products, as well as our extensive global customer base.”
Source: Frutarom Industries Ltd