Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUTq; Bulletin Board:FRUTF) has acquired 100% of UK flavor concentrate maker Belmay Ltd. for $17.1 million in cash.
Belmay operates in the UK, Singapore, Norway, and Denmark. It develops, produces and markets natural flavors for the food and beverage industry. The company has 85 employees and posted $15.1 million in sales in 2006. The company’s facility is near Frutarom site in Kettering, UK.
Frutarom said that the acquisition was important strategically for pursuing its rapid growth. The company added that the acquisition of Belmay would strengthen the company's technological capabilities and product portfolio to make it a leading flavor house in the British market, as well as other target markets, with an emphasis on soft drinks and alcoholic beverages.
Belmay is an R&D-rich company that recently set up a special unit to develop organic products, which will be integrated into Frutarom’s growing business in this sector. Frutarom is reviewing Belmay’s activities outside the UK, and will take measures to maximize efficiency and save more than $3 million in annual operating costs.
Published by Globes [online], Israel business news - www.globes.co.il - on March 28, 2007
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