HAIFA, ISRAEL — Frutarom Industries Ltd. has agreed to acquire 75% of the share capital of the Protein Technologies Ingredients Group for a cash consideration of $50.3 million. Based in Russia, the PTI Group develops, manufactures and markets flavors, seasoning compounds and raw materials for the food industry. The PTI Group had sales of $111 million in 2012.
A bank loan will finance the transaction. The agreement includes an option for Frutarom to acquire the remaining share capital within three years.
The PTI Group operates two production sites near Moscow. A sales and marketing R.&D. center in Moscow includes development and application labs. The company employs 500 and has 25 distribution centers in Russia and neighboring countries.
The PTI Group has a trade and marketing segment that sells raw materials that are not made by the company. That business will merge with Frutarom’s trade and marketing activity.
“The acquisition of PTI continues the implementation of the rapid growth strategy of the Frutarom group and its vision to be the preferred partner for tasty and healthy success,” said Ori Yehudai, president of Israel-based Frutarom. “This is a major strategic acquisition, which bolsters Frutarom’s position as one of the world’s largest and leading flavor companies, which is positioned as a leading global manufacturer of savory taste solutions.”