JERUSALEM: Israel's Frutarom, one of the world's largest flavoring and specialty natural ingredient companies, continued expanding on Tuesday with the purchase of a US biotech firm whose products help the body absorb vitamins and minerals.
The $20 million deal for New Jersey-based Grow Co was Frutarom's 29th acquisition in the past five years.
Many of the purchases have been in the health foods sector since consumers are increasingly looking for healthier and more natural food items, it said.
Frutarom agreed to a mechanism for future consideration conditional on the company's performance during the year following the purchase.
Grow manufactures products for dietary supplement, natural remedy, cosmetic and flavors companies, including a unique bio-carrier delivery system where nutrients are incorporated into the biological system of a natural bacteria that are native to the digestive system.
Chief Executive Ori Yehudai said Frutarom still has "an excellent pipeline of future acquisitions," which will help it reach its target of $2 billion annual sales by 2020. It reported record sales of $234.5 million in the third quarter.
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