HERZILYA, ISRAEL — Frutarom Industries Ltd. continues implementing its growth strategy, announcing its acquisition of 100% of the share capital of the Hong Kong-based companies Inventive Technology Ltd. and Prowin International Ltd. (known collectively as “Inventive”) for $17 million. The transaction, which was financed using bank debt, includes a mechanism for future consideration conditional on the company's business performance over the three-year period following the acquisition.
Inventive was founded in 1998 and engages in the development, manufacturing and marketing of flavors and flavor inclusions, combining flavors with fruit components, chocolate, grains and nuts in dairy products, ice creams, pastries and beverages. In the past year sales for Inventive reached $13.7 million. Inventive has manufacturing, research and development, and marketing facilities at Zhàoqìng in southern China, where it has excess production capacity, as well as an R.&D. and sales center in Shanghai and sales and marketing offices in Hong Kong. The company has a broad customer base that includes blue-chip global food and beverage makers along with leading Chinese food and beverage manufacturers, and its products are sold in China, Southeast Asia, the Middle East and South America.
"The acquisition of Inventive 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 Group. “Frutarom's workforce will enjoy a substantial boost and reinforcement by experienced and efficient managers and employees at every level.”
Frutarom recently completed construction on a new Chinese plant that will enable it to develop flavors locally in China. Mr. Yehudai stated that he is “convinced that our new plant will contribute towards taking a leap forward in our activities in China and Southeast Asia, which constitute target markets for growth and for leveraging our competitive advantages.”