Herzliya-based Frutarom Industries, one of the world’s 10 largest companies in the field of flavors and natural specialty fine ingredients, has purchased 75 percent of the shares of the Mexican company Grupo Piasa S.A. de C.V. (Piasa Group), Mexico’s top local provider of savory solutions, for approximately MXN 405 million (USD 20.5 million).
Frutarom will also acquire the real estate housing Piasa’s main production site and headquarters in Monterrey, in the Mexican state of Nuevo León.
Sales for Piasa Group over the 12-month period ending September 2016 totaled MXN 800 million (approximately US $45 million) after achieving average annual growth of 8% over the past five years.
Founded in 1996, Piasa Group produces flavors, unique spice mixes, sauces, seasonings, marinades, casings, chili-based products, functional ingredients for meat products and vegetable components aimed at the Mexican meat and snacks industries and the country’s dining sector. The company has three production sites and employs about 300 workers.
Mexico’s food and beverages market is estimated at US $90 billion with a projected annual growth rate of over 5%.
This is Frutarom’s first acquisition in Mexico and its fifth in the Latin American market. It acquired the Brazilian company Mylner in 2012, Guatemalan company Aroma in 2013, Montana of Peru in 2014 and Brazilian company Nardi in October 2016.
Frutarom has production and development centers on all six continents and markets and sells over 52,000 products to more than 29,000 customers in over 150 countries. The Israeli company employs more than 4,500 people worldwide and has been acquiring companies rapidly over the past two decades. Piasa is Frutarom’s eighth acquisition in 2016.
“This is an important strategic acquisition that provides Frutarom significant entry into the Mexican market, one of Latin America’s main markets and among the most important and fastest growing in the world,” said Frutarom Group President and CEO Ori Yehudai.
“We will continue working to expand our activity in Latin America and other growing emerging markets where our growth engines are focused,” he said.