Frutarom Acquisition
Frutarom Industries has acquired U.S. based Hagelin & Co for $52.4 million.
The acquisition was financed through short-term bank financing, Frutarom said.
Last month, Frutarom announced the acquisition of 75% of Russia's Protein Technologies Ingredients for $50.3 million in cash. This was followed by the $12.5 million acquisition of Guatemalan flavor company Aroma SA.
Hagelin, which employs 84 workers, develops, produces and markets flavours and unique flavor technologies for the food industry, with an emphasis on the growing area of beverage flavors. Hagelin's sales in 2012 rose 7% to $24.2 million.
Hagelin has higher margin rates than those of Frutarom's flavors' division, the most profitable of Frutarom's activities, into which Hagelin's activity will be integrated.
"Hagelin has distinct competitive advantages and specialises, among other things, in the development of advanced flavor technologies in the areas of sodium reduction, sugar and calorie reduction and flavor enhancement," Frutarom said.
Hagelin's customer base includes leading international food and beverage manufacturers as well as local food and beverage manufacturers in the U.S., Great Britain, Central and South America and Africa. The acquisition is expected to expand Frutarom's customer base.
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