HERZLIYA, ISRAEL — Frutarom Industries Ltd. has agreed to purchase Irish company Redbrook Ingredients Services Ltd. for approximately $44.8 million. The purchase agreement includes a mechanism for an additional consideration based on Redbrook’s future business performance.
Redbrook develops, produces and markets specialty savory taste solutions, including seasoning and functional blends, marinades, glazes, cures and specialty ingredients for food processors. For the 12-month period ended June 30, Redbrook generated sales of approximately $25.4 million and has experienced double-digit growth in the past three years. The company owns an R.&D. and sales and marketing center near Dublin, Ireland, and a production unit and R.&D. sales and marketing center in Daventry, England, near Frutarom’s Wellingborough, England, facility.
|Ori Yehudai, president and c.e.o. of Frutarom|
“The acquisition reinforces our market leadership in the U.K. and constitutes Frutarom’s first entry into the Irish market, also giving us the advantages of a global manufacturer having a local R.&D., production and sales platform for shortening delivery times and improving service to customers of the region,” said Ori Yehudai, president and chief executive officer of Frutarom. “Frutarom intends to utilize and combine Redbrook’s R.&D., sales and marketing infrastructure and production and supply chain platform in Ireland and the U.K. together with Frutarom’s R.&D., sales, marketing and manufacturing infrastructures and platforms in order to realize and leverage the many cross-selling and product possibilities generated by this acquisition by expanding both the customer base and the product portfolio, and to capitalize on the operational synergies between Redbrook’s activity and the activities of Frutarom.”
The purchase of Redbrook marks Frutarom’s sixth acquisition in 2016, continuing the company’s growth strategy of building its global savory activity through acquisitions.“This is an important acquisition in establishing Frutarom’s standing as one of the world’s largest and leading companies for flavors, and strengthens its presence and position as a top global producer of natural, healthy and innovative savory taste solutions,” Mr. Yehudai said. “We are working on seeking out and executing additional acquisitions of companies and activities in our fields of activity, with special focus on high-growth markets, and we have a strong pipeline of potential strategic acquisitions. We will continue carrying out our rapid profitable growth strategy, which is based on profitable internal growth and strategic acquisitions, in order to achieve the targets we recently set: sales of at least $2 billion with an EBITDA margin of over 22% in our core activities by the year 2020.”