Frutarom makes push into Poland with latest acquisition

by Eric Schroeder
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Amco
AMCO’s main activity is the development, production and marketing of innovative savory flavor solutions.

HERZLIYA, ISRAEL — Frutarom Industries Ltd. has announced yet another acquisition, agreeing to acquire 75% of the share capital of AMCO Sp. z o.o. of Poland for $20.7 million. The purchase agreement includes an option for acquiring the remaining balance of shares starting two and a half years from the closing date of the transaction at a price based on the company’s business performance. The transaction will be financed using bank debt and will be completed within the next few weeks, Frutarom said. It is the eleventh acquisition announced by Frutarom in the past year.

Founded in 1998, AMCO has an R.&D. and sales and marketing center along with a production site in Warsaw, Poland, with large production capacity and significant room to expand. AMCO employs a staff of 70, including 12 engaged in R.&D. AMCO’s main activity is the development, production and marketing of innovative savory flavor solutions (the non-sweet spectrum of flavors) that include seasoning blends, marinades and functional ingredients for the food industry. The company’s sales in the 12-month period ended Sept. 30, 2015, reached approximately $19.5 million.

“The acquisition of AMCO is the continuation of Frutarom Group’s implementation of its rapid growth strategy and the realization of its vision ‘to be the preferred partner for tasty and healthy success,’” said Ori Yehudai, president and chief executive officer of Frutarom. “This is a key strategic acquisition that solidifies Frutarom’s position as one of the world’s top companies for flavors, and reinforces its presence and standing as a leading global producer of natural, healthy and innovative savory solutions. The acquisition constitutes a significant entry into the important and expanding Polish market where Frutarom is gaining a modern state-of-the-art production site. As a global manufacturer, this acquisition provides Frutarom the advantages of possessing a local R.&D. and production platform for shortening delivery times and improving customer service in the region. In the future, AMCO’s R.&D. labs and modern state-of-the-art plant will also help boost Frutarom’s activity in Poland in the field of sweet flavors.”
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