Frutarom makes biggest acquisition yet

16 Dec 2015

Frutarom has closed 2015 with yet another acquisition, this time of Wiberg of Germany (including Wiberg's 50% ownership share in a Canadian subsidiary and 51% ownership share in a Turkish company) for approximately $130.4 million.

Frutarom makes biggest acquisition yet

Frutarom has closed 2015 with yet another acquisition – its largest to date - this time of Sagema Austria and Wiberg of Germany (including Wiberg's 50% ownership share in a Canadian subsidiary and 51% ownership share in a Turkish company) (collectively: "Wiberg") for approximately $130.4 million (€119 million). Wiberg sales for 2015 are expected to stand at around $172 million (€155 million), with adjusted EBITDA of some $19 million (€17 million). The total value of assets acquired stood at $131 million (€107.8 million) as of December 31, 2014.Completion of the transaction is subject to approval from the German and Austrian antitrust authorities which Frutarom expects will be granted at the beginning of 2016.

Founded in 1947, Wiberg operates in the specialty and savoury solutions that include flavour extracts, seasoning blends and functional ingredients for the food industry, with special emphasis on processed meats and convenience foods as well as activity focused on innovative culinary solutions for restaurants, catering firms and chefs. Wiberg employs some 670 personnel throughout the world and operates five production sites, the largest of which is in Germany with extensive production capacity and substantial room for expansion, and in Austria, Turkey, Canada, and Los Angeles in the USA. The company has sales and marketing platforms in some 70 countries, with a presence in Europe, North America, Africa and Asia.

"The Wiberg acquisition is the largest strategic acquisition we have carried out so far and the first we'll be carrying through in 2016,” said Ori Yehudai, President and CEO of Frutarom Group. “This acquisition constitutes an important milestone for Frutarom Group's continuing implementation of its rapid growth strategy and the realization of its vision 'to be the preferred partner for tasty and healthy success' while establishing our position as one of the world's largest, foremost and fastest growing companies in the fields of taste and health.”

"Over the past decade Frutarom has consistently taken efforts towards establishing its position as a leading global player in the worldwide savory market by deepening its activity in this area along with making strategic acquisitions of leading quality companies in their fields in Western, Central and Eastern Europe, North America, Africa and Asia. We have just completed construction of a modern efficient plant in China with large production capacity in the savory field which will provide a response for the growing markets of Southeast Asia. The acquisition of Wiberg, among of the world's leading brands and whose name has become synonymous with innovation and quality, transforms Frutarom into a global market leader for savory solutions.”

"The year 2015 has been another milestone year in our journey of rapid and profitable growth while achieving of our ambitious goals and carrying out our growth strategy combining profitable internal growth and acquisitions. In the past four years we have nearly doubled our sales while more than doubling our profits. The acquisition of Wiberg which joins the 12 acquisitions we made this year already brings us to an annual rate of $1.1 billion in sales. We will continue fulfilling the combination of our internal profitable rapid growth strategy and carrying out additional strategic acquisitions of companies and operations in our fields of activity, with special emphasis on activities with high growth rates.”

"Following intensive analysis of our strengthening competitive position and our pipeline for future acquisitions, we are pleased to update and boost our sales target for the year 2020 to USD 2 billion with an EBITDA margin of over 22% in our core activities," concluded Yehudai.