Ori Yehudai, president and CEO of Frutarom Group. (File photo)
HERZLIYA, ISRAEL: Frutarom Industries Ltd said that it acquired 100 percent of the share capital of the Hong Kong based companies Inventive Technology Ltd and Prowin International Ltd, collectively called ‘Inventive’ for $17 million and this marks the twelfth acquisition by Frutarom this year.
Inventive is one of China’s leading local companies in flavours and flavour inclusions, Frutarom said.
The purchase agreement includes a mechanism for future consideration conditional on the company’s business performance over the three year period following the acquisition. The transaction was financed using bank debt.
Inventive’s founders will continue in their roles of managing the company, while the management will become incorporated into Frutarom management in Southeast Asia markets
, Frutarom said.
“Growth rates for processed food consumption in China continue to be high and it is projected to surpass that of the US in 2015. The average Chinese consumer consumes just around one quarter of the processed food consumed by the average American consumer, so the potential for continued growth is strong,” said Ori Yehudai, president and CEO, Frutarom Group.
“In combination with Inventive’s activities, Frutarom will continue developing and deepening its presence in the important markets of China and Southeast Asia,” he said.
“We will continue to seek out and perform further strategic acquisitions of companies in our fields of activity. This will strengthen our position as a leading global player in the field of natural solutions for taste and health,” added Yehudai.
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