HAIFA, ISRAEL — Frutarom continued its push into South America by acquiring Montana Food, the flavors and food colors division of Peruvian company Montana S.A., Frutarom said Sept. 30. The acquisition involved a cash payment of $28.5 million and the assumption of debt of $6.5 million.
Frutarom, for no further consideration, acquired the Montana food operations in Chile. Montana Food, which has assets worth $24.8 million, serves global food, beverage and flavor companies as well as manufacturers in South America and Central America. The purchase price reflects a multiple of seven times 2013 EBITDA.
Frutarom previously bought Mylner, a Brazilian flavors company, in 2012 and Guatemalan Aroma in 2013.“We view the Montana Food acquisition, with its substantial activity in Peru and Chile, where Frutarom hasn’t been active until now in the field of flavors, as another strategic step that expands our activities in the emerging markets altogether and the growing markets of South America in particular,” said Ori Yehudai, president and chief executive officer of Frutarom Group.