HAIFA, ISRAEL — Frutarom Industries Ltd. on Dec. 23 said it had agreed to pay about $10 million in cash to purchase the shares of Vitiva. Based in Markovci, Slovenia, Vitiva specializes in the research and development, production, marketing and sales of plant extracts and naturally-sourced colors.
Vitiva, which had revenues of about $11 million for the 12-month period ended in November, has customers in the food, pharmaceutical, nutraceutical and cosmetics markets.
“The acquisition of Vitiva brings Frutarom advanced R.&D. capabilities and a top-rate experienced management team,” said Ori Yehudai, president and chief executive officer of Haifa-based Frutarom Group. “The acquisition represents another milestone in carrying out Frutarom’s rapid and profitable growth strategy while broadening our portfolio of natural products and solutions at this important crossroads of consumer preference for healthier and tastier products making inroads in the worldwide food, health and cosmetics industries.”
Vitiva extracts active elements from such plants as rosemary, olive and citrus. These ingredients should help Frutarom further strengthen its position in food preservation and shelf life, Frutarom said. Vitiva’s naturally-sourced colors should complement colors from another recent Frutarom acquisition. Frutarom in September agreed to pay $5.82 million in cash to acquire the flavors and naturally-sourced food colors of Montana S.A. (Montana Food), which is based in Peru.Vitiva will be integrated within the framework of Frutarom’s specialty fine ingredients division. Vitiva has a research and development, marketing and sales center and a production site in Slovenia.