Herzliya-based Frutarom Industries, one of the world’s 10 largest companies in the field of flavors and specialty fine ingredients, has fully acquired the Hong Kong companies Inventive Technology and Prowin International (collectively known as “Inventive”) for $17 million.
Frutarom thus finishes 2015 with 12 acquisitions in as many months. The previous buyout, in November, put the Polish company AMCO into its portfolio.
“We have made it a main goal to expand our activity in the emerging markets of China and Southeast Asia with their high rates of growth, both through internal growth and by means of acquisition. The acquisition of Inventive, one of China’s leading local companies in flavors and flavor inclusions, is another important step towards attaining this goal,” commented Ori Yehudai, president and CEO of Frutarom Group.
Frutarom has production and development centers on four continents and employs approximately 3,500 people globally. It markets and sells more than 43,000 products to some 19,000 customers in 150 countries for the food and beverages, flavor and fragrance extracts, pharmaceutical, nutraceutical, health food, functional food, food additives and cosmetics industries.
Yehudai noted that processed food consumption in China is growing rapidly due to the urbanization of Chinese society, the entry of women into the workforce, and changes in the lifestyle and spending habits of the Chinese consumer.
In keeping with this trend, Frutarom recently finished building a state-of-the-art plant in China with laboratories for development and applications.
“The acquisition of Inventive is the 12th acquisition we have made this year, and we are continuing to seek out and perform further strategic acquisitions of companies and operations in our fields of activity while strengthening our position as a leading global player in the field of natural solutions for taste and health,” Yehudai said.
Frutarom’s first acquisition of 2016, of savory flavorings companies Sagema of Austria and Wiberg of Germany, has already been set in motion.