News

Frutarom makes seventh acquisition

14 Oct 2016

Frutarom is to purchase Brazilian company Nardi Aromas for approx. US$1.6 million – its seventh acquisition this year.

Nardi sales for the 12 month period ending in August 2016 amounted to approximately US$ 1.5 million.

Frutarom is to purchase Brazilian company Nardi Aromas for approx. US$1.6 million – its seventh acquisition this year.

Nardi was founded in 1971 and has a production site in the vicinity of the city of Sao Paulo and Frutarom’s Brazilian production site. The company has 14 employees and specialises in the development, production and marketing of natural traditional Brazilian flavours and plant-based herbal extracts for the alcoholic drinks and carbonated beverages markets. Its customers include leading Brazilian beverage companies. Nardi sales for the 12 month period ending in August 2016 amounted to approximately US$ 1.5 million.

Frutarom said that it believes Nardi's natural flavours and herbal extracts, based on unique raw materials originating in Brazil, have tremendous growth potential outside Brazill, and the company intends to incorporate them into its beverage product portfolio and to capitalise on cross-selling opportunities within its global sales and marketing network.

Frutarom said that it sees great importance in expanding its activity in Latin America with emphasis on Brazil, the region’s most significant market. In 2012, the company acquired Brazilian company Mylner who specialise in sweet flavours for beverages and baked goods, as well as in natural extracts from plants and natural flavour products. In 2013 Frutarom acquired Aroma in Guatemala who specialise in producing sweet flavours for beverages, dairy products, confectionery and snacks, and in 2014 Frutarom acquired the natural flavours and colours division of Montana of Peru which produces natural flavours and colours for the food industry and has significant activity in Peru and in Chile.

"The acquisition of Nardi is the continuation of the implementation of Frutarom Group's rapid profitable 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 acquisition that establishes Frutarom’s presence in Brazil and allows for the expansion of our portfolio of solutions in Brazil for the substantial and growing beverages market based on Nardi’s existing activity with its excess production activity, exploiting cross-selling opportunities and attaining of operational savings and the tapping of synergies made possible with our existing activity in Brazil in the fields of R&D, sales and marketing, and production. We also see great potential in expanding Nardi’s activity in natural flavors and herbal extracts originating with unique Brazilian raw materials to outside of Brazil as well, incorporating these into Frutarom’s broad portfolio of solutions for beverages and based on our global sales and marketing network and our circle of customers that generate significant cross-selling opportunities.”

“We intend to continue working to expand our activity in Latin America, with emphasis on the Brazilian market and other key markets in the region.The acquisition of Nardi is the fourth acquisition we have made in Latin America in the past four years, a period in which we have built a broad sales and marketing infrastructure in most of the Central and South American countries, supported by our local and global production and R&D activity. I am convinced that this infrastructure will support the continued rapid growth of our activity in Latin America both by means of organic growth and through additional acquisitions that we intend to evaluate.”

"This is the seventh acquisition we have made since the beginning of the year. We are working on seeking out and executing additional acquisitions of companies and activities in our fields of activity, with special focus on high-growth markets. We have a strong pipeline of potential strategic acquisitions. We will continue carrying out our rapid profitable growth strategy, which is based on profitable internal growth and strategic acquisitions, in order to achieve the targets we recently set: sales of at least US$2 billion with an EBITDA margin of over 22% in our core activities by the year 2020.”