FDBusiness.com

Global flavours and fine ingredients group Frutarom Industries is acquiring British company Savoury Flavours (Holding) and its subsidiaries (SFL) for $5.9 million (£3.8 million). Founded in 1999, SFL develops, manufactures, and markets savoury taste solutions (the non-sweet taste spectrum), including mainly flavours, seasoning compounds, marinades and sauces, specializing in snacks and convenience foods. SFL has a development, manufacturing and marketing site in the UK, and a wide customer base including food manufacturers and private labels manufacturers in the UK and in emerging markets.

SFL increased turnover by 28% to £4.1 million for the twelve months ending in September 30th 2011. Mark Towler, managing director and founder of SFL will continue to manage the business.

SFL’s production site is located close to EAFI’s production site (acquired by Frutarom in February 2011), which manufacturers savoury products as well. The geographic proximity, along with the two companies’ complementary product portfolio, will allow significant business synergies between SFL and Frutarom’s savoury activities globally.

Frutarom’s savoury activities throughout the world have increased significantly over the past few years following the acquisition of Nesse, Gewurzmuller and Ch. Hansen, purchased by Frutarom in 2006, 2007 and 2009 respectively, and the acquisition of EAFI, the savory activities of Rieber and of Ch. Hansen and FSI in 2011. The acquisition of SFL will allow Frutarom to expand its savoury product portfolio and expand activities in developing markets.

“After five acquisitions completed in 2011, Frutarom is opening 2012 with an additional acquisition, which continues to strengthen its activities in the savoury segment in Europe and in developing markets. This is an additional step towards strengthening Frutarom’s position in the UK market, where Frutarom in currently a leading sweet flavors manufacturer,” comments Ori Yehudai, president and chief executive of Frutarom.

He continues: “The global market for savory flavors is growing as a result of trends in improved quality-of-life and changes in consumer behavior, causing increased demand for processed and convenience foods. Frutarom has identified the savory segment as an important growth engine and is investing in the development of unique and innovative high added value products at its sites around the world. The acquisition of SFL, following previous acquisitions, is an additional step towards strengthening Frutarom’s leadership in this important segment, and we intend to continue to invest in the substantial expansion of our activities in the savory segment in additional destinations throughout the world, including through further acquisitions.”

Established in 1933, Frutarom is numbered among the ten leading companies in the world, in the field of flavours and fragrances. Frutarom has significant production and development centres in three continents and it markets its products in five continents to over 10,000 customers in more than 120 countries. Frutarom’s products are produced in its plants in the US, UK, Switzerland, Germany, Israel, China, South Africa and Turkey.