Frutarom has made its fifth acquisition in 2016, and its thirtieth in the last five years, by acquiring German partnership Extrakt Chemie Dr. Bruno Stellmach for approximately $6 million in cash plus $2.2 million of debt.
Frutarom has made its fifth acquisition in 2016, and its thirtieth in the last five years by acquiring German partnership Extrakt Chemie Dr. Bruno Stellmach for approximately $6 million in cash (€5.3 million) plus the assumption of debt (net) amounting to approx. $2.2 million (€ 2 million). Revenues of Extrakt Chemie for the fiscal year ended February 2016 amounted to approx. $10 million (€9 million).Extrakt Chemie is a specialty ingredient extracts company, focusing on pharma, natural medications, nutritional supplements, foods and cosmetics. Extrakt Chemie’s production capabilities and products are said to reinforce Frutarom’s production and technology infrastructure and its portfolio of natural solutions in the pharma field. Frutarom says it will work towards capitalising on opportunities for optimising its global resources in the field of natural extracts along with the cross-selling opportunities arising from this acquisition.Extrakt Chemie’s owners will join Frutarom's managerial ranks in its Specialty Fine Ingredients Division."Over the past two years Frutarom has taken a major strategic step in strengthening its position as a leading global manufacturer of specialty fine ingredients,” said Ori Yehudai, President and CEO of Frutarom. “We acquired Montana Food in Peru and Vitiva in Slovenia along with Nutrafur and Ingrenat in Spain, companies engaged among other things in natural plant extracts and natural colours, as well as Florida-based CitraSource and Scandia specializing in natural citrus-based specialty ingredients, and also Algalo and Grow with their unique technologies for natural raw material extracts.”"The acquisition of Extrakt Chemie is a natural continuation in the strengthening of our global infrastructure for natural ingredient extracts while diversifying and broadening our production capacity and capabilities in the field of pharma and natural medications and adding an efficient, high quality and reputable production base to Frutarom’s global production network.”"This acquisition blends in well with our rapid and profitable growth strategy, deepening and expanding Frutarom's activity in the growing field of natural extracts, with emphasis on improving our operational efficiency which contributes to the continual improvement in Frutarom’s profitability. We will continue investing in significantly expanding our global activity in this important and growing field, both through strategic acquisitions and research and development, and by creating partnerships with knowledge centers specializing in innovative natural ingredients.”"We have an excellent pipeline of future acquisitions which will contribute, along with continued reinforcement of our market leadership in joining together the worlds of natural flavors and health, towards achieving the goals we recently set out: $2 billion in sales by 2020 along with an EBITDA margin of over 22% in our core activities."