Frutarom Industries Ltd. concluded the terms of an agreement for the acquisition of 75% of the share capital of the Protein Technologies Ingredients Group.
November 18/Haifa, Israel/PRNewswire -- Frutarom Industries Ltd. announced that it concluded the terms of an agreement for the acquisition of 75% of the share capital of the Protein Technologies Ingredients Group ("PTI Group"), for a cash consideration of $50.3 million (reflecting a company value of $67 million). PTI has net assets valued at above $40 million and no debt.
The agreement includes an option to acquire the remaining share capital within three years at a price reflecting an EV/EBITDA multiple of 6 - 7x based on the average EBITDA achieved over the three years prior to the exercise. The purchase agreement is in the process of signing, and the company estimates that the transaction will be completed in the coming days. The transaction will be financed with a bank loan.