Frutarom Strengthens its Position as a Leading Global Player in Healthy and Natural Taste Solutions. This is the fourth acquisition completed last year.
Frutarom Industries Ltd. (LSE: FRUT, TASE: FRUT, TASE: FRUTF.PK) announces today the acquisition of CitraSource based in Florida, USA for a consideration of US$7.5 million plus an additional future payment conditional upon CitraSource’s performance in the years 2014-2018.
CitraSource specializes in R&D, manufacturing, marketing and selling of solutions across all ranges of citrus (Orange, Grapefruit, Lemon, Lime and Tangerine).
CitraSource’s revenues in 2013 were about $7 million and its customers include global flavors, food and beverage players.
The CitraSource assets acquired, include a manufacturing facility and a refrigerated tank farm for storing different types of raw materials including citrus specialty, and inventory. These will be integrated into Frutarom’s global supply chain and production infrastructure and will contribute to the expansion and strengthening of Frutarom’s global purchasing system.
Mr. Niv Ben Yehuda and Mr. Randy Aulick will continue managing CitraSource activity, supporting Frutarom’s efforts in growing its global citrus business.
Ori Yehudai, President and CEO of Frutarom: “Frutarom started its activity in 1933 by growing and developing citrus based solutions in Israel. The strengthening of our control over the sourcing of our raw materials (back integration) which CitraSource brings us, will further enhance our leadership position in the market for citrus specialty ingredients and will allow us to expand our product portfolio and provide added value to our customers.
“Frutarom’s strategy is to expanding growing its US activity and developing value-added natural solutions in line with global market trends and with the needs of our flavors, food and beverage customers.
This acquisition, joined with the four completed last year, strengthens our positions as a significant player in the global taste solutions and fine ingredients market”.
Frutarom is a global company operating in the flavor and fine ingredients markets. Frutarom has significant production and development centers in four continents and it markets its products in five continents to over 15, 800 customers in more than 145 countries. Frutarom’s products are intended mainly for the food, beverage, flavor, fragrance, pharmaceutical, nutraceutical, health food, functional food, food additives and cosmetic industries.
Frutarom employs approximately 2, 700 people worldwide.