Frutarom Industries Limited, a global flavor and fine ingredients producer based in Israel, has agreed to acquire Unique Flavors (Pty) Limited of South Africa at a price of $6.7mil.
According to the purchase deal, Unique's management, which is under the leadership of the activity’s CEO, will be integrated into Frutarom’s management in Africa. Meanwhile, Frutarom will integrate the R&D, sales and marketing, purchasing, production and supply platforms.
Unique Flavors is founded in the year of 2001 and engaged in the development, production and marketing of flavours ever since, focusing on savoury flavours and sweet taste solutions.
The company has its production, marketing and R&D facilities in Pretoria, which is close to the new South African site of Frutarom.
Having witnessed rapid growth, Unique Flavors indicated it’s sales in 12 months for the period ending 31, January 2017 was about $9m.
The company has got considerable customer base in South Africa and other African countries including Ghana, Malawi, Zimbabwe and Mozambique.
Frutarom Group regards the acquisition of Unique as the continuation of the implementation of Frutarom's rapid and profitable growth strategy.
Frutarom Group is working on seeking out and executing additional acquisitions of companies and activities in its fields of activity, with special focus on high-growth markets in Asia, Central and South America, Central and Eastern Europe and in Africa. Its share of sales in emerging markets having grown from 27% in 2010 to over 40% in 2016.
Based on combining profitable internal growth and strategic acquisitions, Frutarom will continue carrying out its rapid profitable growth strategy. The company has set a targets to achieve sales of at least $2bn with an EBITDA margin of over 22% in its core activities by 2020.
It is the second acquisition by Frutarom in Africa. Its first acquisition is JannDeRee, a flavours company bought in the year of 2013.
(By our own staff)