Frutarom Industries, one of the world’s 10 largest companies in the field of flavors and specialty fine ingredients, has signed a purchase agreement for the acquisition of 95 percent of the share capital of Investissements BSA. The $35.6 million deal provides for the acquisition of the remaining balance of shares starting two years from now at a price conditional on the company’s business.
“This is an important and significant strategic acquisition that solidifies Frutarom’s position as one of the world’s top companies for flavors, and reinforces its presence and standing as a leading global producer of savory solutions. Until now Frutarom has already enjoyed market leadership for savory solutions in Europe, and the acquisition of BSA is expected to boost its position in this field in North America and India as well,” said Ori Yehudai, President and CEO of Frutarom Group.
The Canadian BSA company’s main activities include the development, production and marketing of unique and innovative savory flavor solutions (the non-sweet spectrum of flavors) that include seasoning blends and functional ingredients for the food industry, with particular focus on the areas of processed meats and convenience foods.
The worldwide market for savory flavors is growing due to the rise in standard of living and lifestyle along with changes in consumer habits leading to higher demand for processed and convenience foods, both in home consumption and eating out.
Frutarom considers the field of savory flavors an important strategic growth engine. Frutarom says the new buyout will reinforce its supply of products in the field of savory and to continue expanding and deepening its activity and market share in Canada, North America and in India.
“Frutarom intends to utilize and combine BSA’s sales and marketing platform in Canada and India together with Frutarom’s sales and marketing infrastructure in the United States and around the world in order to realize and leverage the many cross-selling possibilities created by this acquisition by expanding both the customer base and the product portfolio,” said Yehudai.