Frutarom: 11 - and counting13 Nov 2015
Frutarom has made its 11th acquisition this year having signed an agreement to purchase 75% of the share capital of AMCO of Poland for $20.7 million, with the option to buy the remaining 25%.
Frutarom has made its 11th acquisition this year having signed an agreement to purchase 75% of the share capital of AMCO of Poland for $20.7 million. The purchase agreement includes an option for acquiring the remaining balance of shares starting two and a half years from the closing date of the transaction at a price based on the company's business performance.AMCO is headquartered in Warsaw, Poland. The company’s main activity is the development, production and marketing of savoury flavour solutions that include seasoning blends, marinades, and functional ingredients for the food industry. AMCO sales in the 12-month period ending September 2015 reached approximately $19.5 million."The acquisition of AMCO is the continuation of Frutarom Group's implementation of its rapid growth strategy and the realization of its vision 'to be the preferred partner for tasty and healthy success,' said Ori Yehudai, President and CEO of Frutarom. “This is a key strategic acquisition that solidifies Frutarom's position as one of the world's top companies for flavours, and reinforces its presence and standing as a leading global producer of natural, healthy and innovative savoury solutions. The acquisition constitutes a significant entry into the important and expanding Polish market where Frutarom is gaining a modern state-of-the-art production site. As a global manufacturer, this acquisition provides Frutarom the advantages of possessing a local R&D and production platform for shortening delivery times and improving customer service in the region. In the future, AMCO's R&D labs and modern state-of-the-art plant will also help boost Frutarom's activity in Poland in the field of sweet flavours. "Frutarom considers the field of savoury flavors a key strategic growth engine and the AMCO acquisition, following its previous acquisitions in this field, is a further step towards reinforcing Frutarom's leadership in this important field and we intend to continue investing towards substantially expanding our savoury flavour activities in additional countries around the globe, including through acquisitions. We have recently started up operations at our new modern plant in China which is also capable of producing savoury products and is designed to provide a response to customer needs in this field in the Asian market." "We are continuing to implement our rapid and profitable growth strategy,” concluded Yehudai. “The acquisition of AMCO is our eleventh this year and we continue to seek out and perform further strategic acquisitions of companies and operations in our fields of activity, with special focus on activities and markets exhibiting high rates of growth. We will continue implementing our rapid growth strategy, which is based on combining profitable internal growth and strategic acquisitions, towards attaining the goals we recently set for ourselves - ales of at least $1.5 billion with an EBITDA margin of over 22% from our core activities by the year 2020."
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