Published Date : Dec 10, 2015
Ori Yehudai, Frutarom’s CEO recently stated that the company is primarily focused to expand in China and in Southeast Asia, even though the global acquisition campaign of the Frutarom Industries Ltd. continues. The company that is into the production of flavors and spices for the food and beverage industry, reported that it had taken over full ownership of the Hong Kong company Inventive for a deal of US$17 million, which includes assumption of the debt of the acquired company. Frutarom commented that the acquisition that has been financed with a bank loan, and includes a payment mechanism that is based on the business performance of Inventive over the period of three years.
Inventive, founded in 1998 is into developing, manufacturing, and marketing of flavors with the help of technologies in order to facilitate the combination of flavors with chocolate, grains, fruit components, and nuts in several food products, especially dairy products, pastries, ice cream, and beverages. The revenue of the company in November 2014- October 2015 was totaled at US$13.7 million.
The offices of Inventive are located in Hong Kong and Shanghai and also has a production facility in Zhaoqing located in Southern China. The customer base of the company consists of global food and beverage manufacturers that have operations in China and also local food and beverage manufacturers that export to countries in Southeast Asia, South America, and Middle East.
As stated by the CEO and president of Frutarom, the acquisition of Inventive is in continuance of the implementation of the company’s strategy designed to attain rapid growth. The executive further stated that the primary goal of the company is to expand activity in the emerging markets of China and Southeast Asia due to their high growth rate, which is happening due to internal growth and through acquisition. This is Frutarom’s 12th acquisition in the year, the executive commented.