Following its five acquisitions in 2011, Frutarom has made its second in 2012 with the purchase of 56% of Slovenian flavours company Etol. It hopes to acquire the remaining 44% in the coming weeks.
The transaction was valued at €19.6 million.
Etol, founded in 1924 and employing 240 people, develops, manufactures and markets flavours, focusing on natural flavour products for the food and beverage industry, specialising in local fruits of the region. It active in the growing area of bases for beverages that Frutarom has identified as a strategic area for the company, and in which it plans to further invest in order to expand its activity.
Etol has seen significant growth from €31.5 million in 2006 to €46 million in 2010. In the 12 months ending 30 September, 2011 Etol’s sales grew at 7.5% compared to the same period in 2010, reaching €48.5 million. The company is profitable and has customers in 46 countries.
Frutarom believes the acquisition is synergistic with its activities, and is expected to significantly increase Frutarom’s customer base and scope of sales in emerging markets, expand its product portfolio and deepen its operations and market share in these important markets.
”We continue to seek out strategic acquisitions which will bring high added value for our shareholders, and implement our rapid growth strategy combining internal profitable growth with strategic acquisitions, which together allow us to achieve our ambitious goals,” said Ori Yehudai, Frutarom’s president and chief executive officer.
