HERZLIYA, ISRAEL — Frutarom Industries Ltd. has acquired 100% of the shares of Ridgefield, N.J.-based Grow Company Inc. for $20 million, the company’s 29th transaction in the past five years. The transaction includes a mechanism for future consideration conditional on the company’s business performance during the year following the purchase date. Bank debt financed the transaction.
Founded in 1977, Grow provides natural ingredients to dietary supplement, natural remedy, functional foods, cosmetic and flavors companies. The company’s technology and products are expected to strengthen Frutarom’s technological infrastructure and its portfolio of natural solutions for the food and health sectors.
Grow has a research and development and marketing center and production site in New Jersey. The company’s owners will join Frutarom’s managerial ranks in its Specialty Fine Ingredients Division.
“Over the past two years Frutarom has taken a major strategic step in strengthening its position as a leading global manufacturer of specialty fine ingredients: We bought up Montana Food in Peru and Vitiva in Slovenia along with Nutrafur and Ingrenat in Spain, companies engaged among other things in natural plant extracts and natural colors, as well as CitraSource and the activities of Scandia, both in the U.S., which specialize in natural citrus-based specialty ingredients,” said Ori Yehudai, president and chief executive officer of Frutarom. “Last week we announced our investing in Algalo, which focuses on cultivating algae from which it produces advanced products using its own unique biotechnological techniques.
“The acquisition of Grow blends in well with our rapid and profitable growth strategy, deepening and expanding Frutarom’s activity in the growing field of natural specialty dietary supplements and the use of unique technologies in their manufacture. We will continue investing in significantly expanding our global activity in this important and growing field, both through strategic acquisitions and by collaborating with universities, research institutes and startup companies for developing innovative natural ingredients.”In addition to the acquisition of Grow, Frutarom said it has completed the purchase of 75% of the share capital of the Polish company AMCO Sp. z o.o., which specializes in unique savory flavor solutions.