Fifth Acquisition by Frutarom This Year
Frutarom Industries, one of the world’s largest flavors and specialty fine ingredients companies, continues implementing its rapid growth strategy, having just purchased 95% of Investissements BSA (BSA) for C$42.75 million (US$35.6 million). The transaction is being financed using bank debt and will be completed within the next few weeks.
BSA was founded in 1989, has a large and efficient production site in Montreal and employs around 140 people. BSA’s main activities include the development, production and marketing of unique and innovative savory flavor solutions (the non-sweet spectrum of flavors) that include seasoning blends and functional ingredients for the food industry, with particular focus on the areas of processed meats and convenience foods.
In addition to its North American operations, in recent years BSA has developed an interesting operation in India in which it holds a 90% stake, with 10% owned by a local partner who manages its activity. The company in India has local production facilities and supplies customers in the Indian market with savory flavor solutions, and also assists the group in procuring raw materials in source countries. BSA’s activity in India will contribute towards strengthening and securing Frutarom’s position in the expanding Indian market and joins the growing activity of the Indian company Sonarome whose acquisition was announced by Frutarom just several days ago.
The worldwide market for savory flavors is growing due to the rise in standard of living and lifestyle along with changes in consumer habits leading to higher demand for processed and convenience foods, both in home consumption and eating out. Frutarom considers the field of savory flavors an important strategic growth engine and in 2006 began substantially expanding in this field through the acquisition of the savory activities of the Nesse group, Gewurzmueller and Christian Hansen in 2006, 2007 and 2009 respectively, the acquisition of EAFI and the savory activities of Rieber and of FSI in 2011, the acquisition of Savoury Flavours in 2012, the acquisition of 75% of the Russian company PTI in 2013, and the acquisition of FoodBlenders in 2015.
