Israel-based flavor and fragrance company Frutarom has acquired Aroma, a Guatemala-based flavor company for a net consideration of $12.5m, as part of its growth strategy with a focus on developing markets.
Aroma manufactures and markets flavors for beverages, dairy products, confectionery, snacks and convenience food segments. The company employs 57 people and operates a production, development and marketing site in Guatemala City.
The acquisition, which is third for Frutarom in 2013, includes Aroma's plant in Guatemala. As per the terms, an additional consideration will be paid in the amount of any excess EBITDA above US$2.25m in the years 2013 to 2015.
The deal will enable Frutarom to strengthen its presence and increase its market share in the significant and growing markets of Central and South America.
Aroma owner and CEO will continue to manage the company's business together with Frutaorm's management in the next few years.
Frutarom president and CEO Ori Yehudai said, "We consider the acquisition of Aroma as another strategic step to increase Frutarom's market share in high growth markets in general and particularly in Central America, which Frutarom has identified as attractive markets that will contribute to future development.
"Frutarom intends to take advantage and integrate Aroma's production, R&D, sales and marketing infrastructure with Frutarom's global R&D, sales and marketing infrastructures in order to leverage and exploit the cross-selling opportunities generated by this acquisition."
The company intends to identify and perform additional strategic acquisitions of companies and businesses in the industry, with a special emphasis on high-growth markets.
Image: The acquisition is part of Frutarom's rapid growth strategy with a special emphasis on developing markets. Photo courtesy of artur84 at FreeDigitalPhotos.net.
