Frutarom Industries Ltd., a multinational company operating in the global flavors and fine ingredients markets, announces that today it signed an agreement for the purchase of René Laurent of France with activity also in Morocco as well as natural extracts activity known as BFA for approx. $21.3 million (Euro 20 million).
The transaction was completed upon the signing of the agreement and was financed through bank debt.
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Rene Laurent estimates its sales volume in the 12 month period ended March 2017 as having amounted to approx. $13.2 million (approx. Euro 12 million).
Founded in 1885, the company focusing on sweet flavors and other on savory flavors, has a longstanding reputation as one of the world’s oldest companies in flavors and specialty field.
René Laurent has two production sites and an R&D center near Cannes, plus a production site near Casablanca, Morocco, where natural herbal extracts activity is carried out for both the field of natural flavors and the field of antioxidants for food protection.
René Laurent has a broad customer base in Europe, mainly in France, as well as in French speaking countries in Africa
Ori Yehudai, President and CEO of Frutarom Group, said: “The René Laurent acquisition is first acquisition in the field of flavors made by Frutarom in the large and important French market and its first acquisition of a factory for plant extracts in Morocco.
Frutarom intend to unite René Laurent’s R&D and sales and marketing platforms, in both the areas of sweet flavors and of savory, with Frutarom’s European R&D and sales and marketing platforms
“This is the second acquisition we are making this year and follows the acquisition of the South African flavors company Unique Flavors. Since the beginning of 2015 we have already acquired 21 companies which have been integrated into our global activity
Frutarom is working on finding and making further strategic acquisitions of companies and activities “in order to achieve the targets we recently set: sales of at least $ 2 billion with an EBITDA margin of over 22% in our core activities by the year 2020,” Yehudai said.