As of the date of signing Frutarom held about 19 percent of Enzymotec’s shares at an average price of $9.6 per share. The company will acquire the balance of shares at $11.9 per share.
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Frutarom’s annual sales run-rate already reaches close to $1.5 billion and continues to establish itself as one of the world’s ten top companies in its field.
This is the ninth acquisition in 2017.
Total Enzymotec sales in the 12 month period ended June 2017 stood at $47 million. Enzymotec’s nutrition segment sales in the 12 month period ended in June 2017 totaled $36.5 million, with adjusted Ebitda of $15.7 million.
In first quarter of 2017 sales of Enzymotec’s nutrition segment reached $19.2 million with adjusted ebitda of $9.3 million.
The transaction will be done via a full merger of Enzymotec into a subsidiary of Frutarom.
Ori Yehudai, President and CEO of Frutarom Group, said: “This acquisition will provide additional reinforcement to our growing activity in natural specialty fine ingredients based on innovation which is expanding at a rapid pace.
“We conducted friendly and professional negotiations with Enzymotec’s board of directors. The merger will enable full integration of the companies’ activities in the fields of R&D, sales, marketing, production, supply chain and logistics while accelerating our joint growth through many cross-selling opportunities inherent in the acquisition and the expansion of the product portfolio to both Enzymotec’s and Frutarom’s existing customer bases.
“We particularly see Enzymotec’s nutrition segment as playing an important part in our future profitable growth strategy that will contribute to the expansion of the portfolio of comprehensive solutions for customers of both companies in the fields of pharmaceuticals, dietary supplements, designated foods for infants in the field of infant formula (where Frutarom has almost no activity currently) and elderly clinical nutrition in which Frutarom is active.
“We look forward to welcoming Enzymotec’s excellent and experienced management team and employees to the Frutarom family,” said Yehudai.