Frutarom has acquired US flavours company Foote & Jenks (F&J) for approximately US$ 4 million. Founded in the early 1980s, F&J develops, manufactures and markets flavor extracts for the pharma, food and beverages industries. The company has 10 employees, a site in New Jersey for its production, R&D and marketing activities, and a broad customer […]
Founded in the early 1980s, F&J develops, manufactures and markets flavor extracts for the pharma, food and beverages industries. The company has 10 employees, a site in New Jersey for its production, R&D and marketing activities, and a broad customer base in North America. Sales turnover for F&J in 2014 amounted to approximately US$ 2.9 million.
Frutarom said it will work towards fully capitalising on the many cross-selling opportunities arising from the acquisition and expanding the product portfolio offered to the company’s existing customer base, and that it will also work towards achieving maximum commercial and operational efficiencies at F&J in cooperation with other Frutarom USA production sites.
“This is an acquisition of growing and profitable flavour activity, Frutarom’s most profitable core field,” said Ori Yehudai, President and CEO of Frutarom. “A major part of F&J sales is to customers in the pharma industry who demand advanced solutions for masking the aftertaste of active ingredients contained in their products, as well as high quality, and conformance with strict regulatory requirements. Frutarom already operates in this area and views it as an attractive field of endeavour for itself which also provides a good fit with the activity of its specialty fine ingredients division that includes activity in active ingredients with added health value for the pharma and nutraceutical industries. We see significant synergies between F&J activity and Frutarom’s flavors activity in the US, and we intend to leverage the cross-selling possibilities that this acquisition generates both by expanding the product portfolio and by broadening the customer base.”
“We are continuing to implement our rapid and profitable growth strategy combining internal growth and strategic acquisitions. The acquisition of F&J is the eighth acquisition we are completing this year and marks the continuation of carrying out our plan to expand our activity in the US market. We are working towards identifying and executing further strategic acquisitions of companies and operations in our fields of activity, with special focus on fast-growing markets and activities.”