Frutarom looks to strengthen position in Argentina15 Mar 2018
Frutarom has signed an agreement for the purchase of 70% of the share capital of the Argentinian companies Meroar and Meroaromas for $11.2 million.
Frutarom has signed an agreement for the purchase of 70% of the share capital of the Argentinian companies Meroar and Meroaromas for $11.2 million. The purchase agreement includes an option to purchase the balance of Meroar's shares, starting from the elapse of 3 years of completion of the transaction, at a price based on Meroar's business performance during this period. The transaction is expected to be completed over the coming months and it will be financed through bank debt.Meroar's sales turnover in 2017 totaled approx. $7.4M, while exhibiting higher profitability rates than those of Frutarom's Flavors division, which it will be integrated with. This acquisition is Frutarom's first significant entry into the important Argentinian market. Frutarom projects an accelerated growth in Meroar’s activity, supported by, among other things, the numerous cross-selling opportunities generated by this acquisition, based on Frutarom's position in Latin American markets, and the broad range of technologies and solutions it has in these markets, as well as Meroar's leading position in Argentina.Established in 1980, Meroar researches, develops, manufactures and markets flavours and fragrances. The group has a workforce of 40 employees and a manufacturing site in Buenos Aires, the capital of Argentina, with R&D and application labs, and separate production facilities for flavours and fragrances. Meroar has a broad portfolio of solutions, which includes fragrances for the cosmetics, personal care and household products industries, and flavours mainly for the beverage, sweets, baked goods and pharmaceutical industries. Meroar has a broad customer base in Argentina which includes leading cosmetics and food companies. Meroar's managers and founders have decades-long experience, some of it acquired in leading global companies in the flavours and fragrances industry.
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