News
Frutarom acquires Canadian savoury flavours company
22 May 2015Frutarom has made yet another acquisition with the purchase of 95% of the share capital of Canadian company BSA for $CA 42.75 million (approximately US$ 35.6 million). The purchase agreement provides for the acquisition of the remaining balance of shares starting two years from now at a price conditional on the company’s business. BSA has […]
Frutarom has made yet another acquisition with the purchase of 95% of the share capital of Canadian company BSA for $CA 42.75 million (approximately US$ 35.6 million). The purchase agreement provides for the acquisition of the remaining balance of shares starting two years from now at a price conditional on the company’s business.
BSA has a production site in Montreal and employs around 140 people. The company’s main activities include the development, production and marketing of savoury flavour solutions that include seasoning blends and functional ingredients for the food industry, with particular focus on the areas of processed meats and convenience foods. BSA sales in 2014 (for the 12 months ending Aug. 2014) reached approximately CA$ 37 million (approximately US$ 34 million).
In addition to its North American operations, in recent years BSA has developed an operation in India in which it holds a 90% stake, with 10% owned by a local partner who manages its activity. The company in India has local production facilities and supplies customers in the Indian market with savoury flavour solutions, and also assists the group in procuring raw materials in source countries. BSA’s activity in India will, says Frutarom, contribute towards strengthening and securing its position in the growing Indian market and joins Sonarome whose acquisition was recently announced by Frutarom.
“The acquisition of BSA 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 an important and significant 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 savoury solutions. Until now Frutarom has already enjoyed market leadership for savoury solutions in Europe, and the acquisition of BSA is expected to boost its position in this field in North America and India as well.
“Thanks to Frutarom’s proven experience carrying out acquisitions and capitalizing on the abundant synergies and cross-selling opportunities inherent in merging the acquired activity with those of Frutarom Group, we are certain that this acquisition too will contribute to the continuation of Frutarom’s rapid and profitable growth and generate high value for our customers, employees and investors. Frutarom intends to utilize and combine BSA’s sales and marketing platform in Canada and India together with Frutarom’s sales and marketing infrastructure in the United States and around the world in order to realize and leverage the many cross-selling possibilities created by this acquisition by expanding both the customer base and the product portfolio.
“Frutarom considers the field of savoury flavours a key strategic growth engine and the BSA 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.These days we are completing construction of a new modern plant in China which will also be 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 the BSA group is the fifth acquisition we have executed this year and we continue to search 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.”