Frutarom Industries Ltd acquires activity and assets of the British East Anglian Food Ingredients Ltd (EAFI)

Frutarom Industries Ltd Tuesday acquired the activity and assets of the British East Anglian Food Ingredients Ltd (EAFI). The investment is for a consideration of approximately US$ 4.8 million (£3 million).

The acquisition will be self-financed. Frutarom estimates that the deal will be completed within a number of weeks.

EAFI develops, manufactures, and markets savory taste solutions (the non-sweet taste spectrum). Its product range includes flavors, seasoning compounds, and functional ingredients for the food industry with a specialization in the sectors of convenience food, snacks, and processed meat and fish.

Among the assets being acquired is EAFI’s operational facility in the United Kingdom which houses the company’s R&D, marketing, and manufacturing capabilities. EAFI employs roughly 35 employees and serves a broad customer base. The firm said EAFI’s activities are synergetic with its current activities in the UK and with Frutarom’s savory competencies in Europe, which have grown significantly in recent years following a number of acquisitions in the sector.

These acquisitions include the savory activity of Chr. Hansen, Gewurzmuller and Nesse in Germany (acquired in 2009, 2007 and 2006 respectively) along with the recent purchase of the Scandinavian savory activity of Rieber a few weeks ago.

Ori Yehudai, President and Chief Executive Officer of Frutarom said the acquisition of EAFI is a continuation of Frutarom’s rapid growth strategy, and another step in the fulfillment of its vision, to be the preferred partner for tasty and healthy successes.

Yehudai said the acquisition bolsters Frutarom’s presence and positioning as a leading global producer of flavors in general and of savory solutions in particular. It strengthens both Frutarom’s technological capabilities and its comprehensive product offering to its customers in the fields of savory flavors and functional foods around the world, he said.

The acquisition of EAFI will allow Frutarom to widen its global customer base via a stronger entrance into the UK market. Frutarom is the leading local flavor manufacturer in the United Kingdom, however until now its main focus in that market has been on the sweet spectrum of flavors, he noted.

The addition of EAFI rounds out the Frutarom portfolio, increasing the range of solutions that the firm can offer to food manufacturers in the United Kingdom. The global market for savory flavors is growing as a result of trends in improved quality-of-life and changes in consumer behavior.

25 Jan 2010.