Israel-based flavor and ingredients manufacturer Frutarom Industries has acquired South African flavor company JannDeRee for approximately $5m.
JannDeRee, established in 1993, develops, manufactures, and markets savory flavors and sweet flavor solutions.
The company operates an R&D, production and marketing site in Johannesburg, South Africa. It has a wide customer base in South Africa and in other emerging countries in the sub-Saharan region such as Malawi, Zimbabwe and Mozambique.
Frutarom stated that it will take immediate actions to integrate activities, including integration of R&D, marketing and sales infrastructures, purchase, production and supply. Recently, the company has further strengthened its presence in African markets by adding additional sales personnel in key countries such as Nigeria.
Following the JannDeRee's management, headed by its managing director, will become part of Frutarom's management in Africa and will work jointly to accelerate Frutarom's growth in the region.
Frutarom president and chief executive officer Ori Yehudai said the acquisition of JannDeRee continues the implementation of Frutarom's rapid and profitable growth strategy and the realization of its vision 'To be the preferred partner for tasty and healthy success'.
"The acquisition will substantially strengthen Frutarom?s positioning in these fast growing regions of Africa."
"The acquisition contributes to the expansion of our product portfolio for countries in Africa, to the strengthening of our management, research and development, manufacturing, marketing and sales capacities in the area of savory flavors," Yehudai added.
Frutarom noted that it will continue to invest in the growing regions of Asia, Central and South America, Central and Eastern Europe and Africa, following a market share in emerging markets which has grown from 27% in 2010 to 36% in 2012.