Frutarom buys Redbrook in Ireland, its 6th acquisition this year

Frutarom buys Redbrook in Ireland, its 6th acquisition this year

9:46 AM, 3rd August 2016
Frutarom buys Redbrook in Ireland, its 6th acquisition this year
Ori Yehudai, president and CEO of Frutarom. (File photo)

HERZLIYA, ISRAEL: Frutarom Industries Ltd continues its momentum of acquisitions and the implementation of its rapid and profitable growth strategy: the company has signed an agreement for the purchase of 100 percent shares of the Irish company Redbrook Ingredients Services Limited (Redbrook) in exchange for approximately $44.8 million.

The purchase agreement includes a mechanism for an additional consideration based on Redbrook’s future business performance. The transaction was financed through bank debt.

Redbrook was founded in 1987 and has an R&D and sales and marketing center and an efficient production site near Dublin, Ireland as well as a production unit and R&D and sales and marketing center in Daventry, England, near Frutarom’s site at Wellingborough, England.

Redbrook has 39 employees. Redbrook’s main activity is the development, production and marketing of innovative specialty savory taste solutions, which includes seasoning and functional blends, marinades, glazes, cures and specialty ingredients for food processors.  Redbrook sales for the 12-month period ending June, according to current exchange rates, amounted to approximately $25.4 million. In the last three years Redbrook has exhibited double digit growth.

The global market for savory flavors is growing due to the rise in standard of living and changes in lifestyle and consumer habits bringing about increased demand for processed and convenience foods both for home consumption and for eating out.

Frutarom considers the field of savory flavors an important growth engine for itself and about 10 years ago embarked on a strategic course of action to significantly build up its global savory activity by acquiring leading companies in their fields possessing unique solutions and a strong position in strategic target markets.

Frutarom sees great strategic importance for this field, in which it now holds a leading market position, and focuses on developing unique innovative natural and healthy products with high added value at its sites throughout the world. Redbrook’s activity is largely synergetic with Frutarom's global savory activity and will enable Frutarom to continue expanding and deepening its activity and market share in the UK and Ireland, and reinforce its supply of savory products while leveraging Redbrook’s specialized knowhow and technology.

The CEO of Redbrook, Kieran Fox, who has many years of experience and has headed the company’s growth in recent years, will continue in his role and will join Frutarom’s flavors activity management.

"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. The acquisition reinforces our market leadership in the UK 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 CEO of Frutarom.

© Worldofchemicals News


Read about the latest acquisition made by the company:

Frutarom buys Extrakt Chemie in Germany; its fifth acquisition this year

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