Israel-based Frutarom Industries has agreed to acquire Unique Flavors (Pty) Limited of South Africa for ZAR90m ($6.7m).
The purchase deal includes a mechanism for future consideration depending on Unique’s future business performance.
Frutarom will integrate the R&D, sales and marketing, purchasing, production and supply platforms. Unique’s management, led by the activity’s CEO, will be integrated into Frutarom’s management in Africa.
Founded in 2001, Unique Flavors is engaged in the development, production and marketing of flavours, with focus on savoury flavours and sweet taste solutions.
The company with its workforce of about 64, has its production, marketing and R&D facilities in Pretoria, near Frutarom’s new South African site.
In recent years, the company witnessed rapid growth. The sales of Unique Flavors in 12 months for the period ending 31, January 2017 was about $9m.
The company has customer base in South Africa and other African countries such as Ghana, Malawi, Zimbabwe and Mozambique.
Frutarom Group president and CEO Ori Yehudai said: “The acquisition of Unique is the continuation of the implementation of Frutarom’s rapid and profitable growth strategy and the realization of its vision ‘to be the preferred partner for tasty and healthy success.’
Yehudai said: “We are working on seeking out and executing additional acquisitions of companies and activities in our fields of activity, with special focus on high-growth markets in Asia, Central and South America, Central and Eastern Europe and in Africa, with the share of our sales in emerging markets having grown from 27% in 2010 to over 40% in 2016.
“We will continue carrying out our rapid profitable growth strategy, which is based on combining profitable internal growth and strategic acquisitions, in order to achieve the targets we recently set: sales of at least $2bn with an EBITDA margin of over 22% in our core activities by the year 2020.”
It is the second acquisition by Frutarom in Africa, the first being JannDeRee, a flavours company acquired in 2013. Last year, the company started a production facility and an R&D centre in Johannesburg.
Source: FBR Home
