Frutarom acquires Vitiva for $10m24 Dec 2014
Frutarom has continued its momentum of acquisitions and the implementation of its strategy for rapid and profitable growth with the announcement of the signing of an agreement to purchase the shares of Vitiva of Slovenia for a cash payment of approximately US$10 million. The transaction will be completed over the coming weeks. Vitiva specialises in […]
Frutarom has continued its momentum of acquisitions and the implementation of its strategy for rapid and profitable growth with the announcement of the signing of an agreement to purchase the shares of Vitiva of Slovenia for a cash payment of approximately US$10 million. The transaction will be completed over the coming weeks.
Vitiva specialises in the research and development, production, marketing and sales of specialty natural extracts from plants exhibiting antioxidant activity or scientifically proven health attributes backed up by clinical studies and of natural colours for customers in the food, pharmaceutical, nutraceutical, and cosmetics markets.
Vitiva’s revenues have grown from US$8.7 million in 2013 to approximately US$11 million for the 12-month period ending November 2014 (27% increase). Its activity will be integrated within the framework of Frutarom’s specialty fine ingredients division.
According to Frutarom, Vitiva has many years of experience and excellent capabilities in extracting active elements from plants (particularly rosemary, olive and citrus, among others) and this will help Frutarom expand its portfolio of natural products for the food industry as well as in the fields of health and cosmetics. In addition, Vitiva has R&D abilities and a pool of knowledge based on longstanding research for continuing to expand its current product portfolio and toward entry into other fields such as the field of pet food and livestock feed preservation. Combining these abilities with Frutarom’s capabilities in the field of antioxidants, particularly in the area of food preservation and protection and lengthening shelf life based on natural ingredients, will even further strengthen Frutarom’s position as a leading player in R&D, production, and sales for these types of solutions.
The natural food colors activity will join the natural food colors activity by Montana Food which was acquired by Frutarom this past September, advancing the implementation of Frutarom’s strategy of penetration into this burgeoning field with the intention of continuing to invest in a major expansion of its global activity in this growing area.
Vitiva has an R&D, marketing and sales centre and a modern, efficient production site in Slovenia with large output capacity along with the possibility for significant expansion. Vitiva has 61 employees, including 10 engaged in research, development and applications from these, and 8 holders of PhD degrees with expertise in the field of antioxidants.
Frutarom said that it will work towards capitalising on the many cross-selling opportunities inherent in this acquisition and bolster the substantial ongoing development and expansion of its activity in natural functional solutions which combine taste and health and provide Frutarom a key competitive advantage. Active antioxidant ingredients are an important complementary product to food manufacturers, including meat and sausage producers, and Frutarom also intends to include these specialty ingredients in the overall portfolio of products and solutions offered to its many customers in the savory sector. In 2007 Frutarom acquired RAD which specializes in natural extracts with antioxidant activity from oregano, and the current acquisition expands on and supplements the solutions offered to thousands of customers in this field.
“Frutarom is a leading global producer of natural specialty fine ingredients and acquiring Vitiva fits in well with our rapid and profitable growth strategy which is based on natural flavor and health products,” said Ori Yehudai, President and CEO of Frutarom Group. “”The acquisition of Vitiva brings Frutarom advanced R&D capabilities and a top-rate experienced management team. The acquisition represents another milestone in carrying out Frutarom’s rapid and profitable growth strategy while broadening our portfolio of natural products and solutions at this important crossroads of consumer preference for healthier and tastier products making inroads in the worldwide food, health and cosmetics industries. Thanks to Frutarom’s proven experience in successfully executing acquisitions and capitalizing on the inherent synergetic opportunities arising from combining the acquired activity with Frutarom’s activities and the many cross-selling opportunities, we are convinced that this acquisition will also contribute towards Frutarom’s continued rapid and profitable growth and generate value for our customers, our employees, and our investors.”
“The acquisition of Vitiva is the third acquisition we have performed this year, and we are striving to identify and execute further strategic acquisitions of companies and operations in our fields of activity. We will continue implementing our rapid growth strategy which is based on combining profitable internal growth and strategic acquisitions.”
“We are proud to be joining the Frutarom family,” said Vitiva CEO Ohad Cohen. “Following the acquisition, Vitiva will be able to enjoy many development and growth opportunities stemming from combining both companies’ R&D and scientific and technological expertise, expanding the product range, and from Vitiva’s ability to substantially boost its marketing capability by virtue of Frutarom’s global infrastructure while continuing to extend excellent service to its customers. I have no doubt that Frutarom is the best home for Vitiva.”
Mintel highlights innovative, surprising new products in 2018
15 Aug 2018
Food and drink innovation in 2018 continues to be influenced by flavour extremes and the impact of social media in spreading visually stimulating and fun concepts, notes Chris Brockman, EMEA Research Manager at Mintel.Read more
Glanbia announces performance nutrition ingredients
25 May 2018
Glanbia Nutritionals has announced what it describes as two new pioneering and innovative performance nutrition ingredients for formulation in functional beverages in Europe, the Middle East and Africa.Read more
Ecotrophelia UK shortlist announced
24 May 2018
The growing trend for plant-based diets has inspired the teams that have entered this year’s student food innovation competition – Ecotrophelia UK. All five of the shortlisted products are meat-free and four are also vegan.Read more
Healthcare continuum drives Lonza growth
10 May 2018
Lonza has reported what it describes as a positive start to 2018 with businesses along the healthcare continuum as growth drivers.Read more
Arla enters breakfast food-to-go market
9 May 2018
Arla Foods is set to launch into the breakfast food-to-go market with the introduction of its new Milk & Oats range of ready to drink beverages.Read more
Eurofins to acquire Covance Food Solutions
7 May 2018
Global life sciences company LabCorp has announced that it has entered into a definitive agreement under which Eurofins Scientific will acquire the Covance Food Solutions business from LabCorp for $670 million.Read more
Engaging with the Instagram generation
3 May 2018
Colourful, exotic and unusual foods are on the rise as a growing number of consumers look for food experiences they can share on social media.Read more
New shake makes children taller
1 May 2018
Nutritional Growth Solutions is introducing Healthy Height, a kids’ protein shake the company says is clinically shown to improve children’s height, to the European market.Read more
Mintel: Europe leads on private label launches
27 Apr 2018
Europe accounted for over half (57%) of all private label launches with premium claims globally in 2017, according to new research from Mintel Global New Products Database (GNPD).Read more
Ohly launches maple syrup powder
1 Aug 2016
Ohly has launched a new Maple Syrup Specialty Powder. The latest addition to the ProDry range is said to deliver authentic maple syrup flavour and sweetness in a free flowing powder form.Read more
Are you a supplier
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation