News

Frutarom: oops - they did it again

24 Oct 2017

Frutarom has made its eighth purchase of 2017 with the acquisition of 60% of the shares of Thai company The Mighty Co for approx. $12 million, valuing the company at around $20 million.

Frutarom is to purchase 60% of the shares of the Thai company The Mighty Co (including the activity of Maharaj Food Co and Mighty International Co for approximately THB393 million (approx.US$ 12 million) (not including debt) at a valuation of THB655 million (approx. US$20 million) (not including debt). The acquisition of Mighty is Frutarom’s second acquisition this year in Southeast Asia after having acquired the Vietnamese flavours producer WFF.

In the framework of the transaction Frutarom will initially acquire 49% of Mighty and will raise its holdings to 60%. Mighty’s sales turnover in the 12 months ended August 2017 totalled approx. THB500 million (approx. US$15 million) after having registered average annual growth of 12% over the past four years.

Mighty, which was founded in 1989, engages in the development, production and marketing of flavours, including savoury taste solutions. The company is said to have a leading position in Thailand’s flavours market where there are very few producers of taste solutions. In recent years Mighty has won a number of prizes as an innovative and leading flavours manufacturer in Southeast Asia. The company’s broad portfolio of solutions includes flavours, seasoning blends and marinades as well as specialty functional raw materials for the food and beverage industry with emphasis on the field of convenience foods, snacks, noodles, fish, meats, baked goods, beverages and dairy, and it has a portfolio of products and solutions adapted to Asian tastes.

Mighty’s activity also includes solutions for producing raw materials for the fields of infant nutrition and elderly nutrition, and Frutarom intends to continue developing this activity in Thailand and in the countries of the region.

Mighty has approximately 180 employees, two production sites with excess production capacity, including a new site located in a development zone which enjoys government incentives and has advanced equipment and production capacity allowing for significant expansion potential, and advanced innovative R&D activity with a pipeline of patent protected products and developments in the field of savoury flavours.

Mighty has around 160 customers and is said to be one of the few local flavours companies in Southeast Asia that operates at international standards which allows for supplying major international food and beverage customers along with medium-sized and small local customers. About 70% of its activity is in Thailand and the rest is in the growing countries in Southeast Asia and Asia-Pacific, including Indonesia, Malaysia, Singapore, Vietnam, Bangladesh and India, among others.