Frutarom has agreed to acquire 75% stake in savory solutions provider Piasa Group for approximately MXN405m ($20.5m) to foray into the Mexican market.
Piasa is Frutarom’s first acquisition in Mexico, while being the fifth in the Latin American market in the last four years. It is also the eight acquisition for Frutarom this year.
As part of the deal with Piasa, Frutarom will also buy the Monterrey located real estate which houses both the production site and headquarters of the Mexican company.
Piasa’s acquisition is expected to consolidate Frutarom's global savory business, helping it to continue expansion and deepening its activity and market share in the Latin America region.
It is also said to further strengthen its supply chain in the savory and other fields by using Piasa’s expertise and technology besides its expansive marketing platform in Mexico.
Piasa's portfolio of solutions includes flavors, unique spice mixes, sauces, seasonings, marinades, casings, chili based products, functional ingredients for meat products and vegetable components.
Frutarom Group president and CEO Ori Yehudai said: "The acquisition of Piasa is the continuation of the implementation of Frutarom Group's rapid profitable growth strategy and the realization of its vision 'to be the preferred partner for tasty and healthy success.'
“This is an important strategic acquisition that provides Frutarom significant entry into the Mexican market, one of Latin America’s main markets and among the most important and fastest growing in the world.”
Following the acquisition, Piasa Group CEO and co-founder Ricardo Madrigal will continue in his existing role and will be absorbed into the Frutarom’s global Flavors activity management.
The acquisition, financed through bank debt, is likely to be completed within the next several weeks.
In August, Frutarom acquired an Irish savory taste solutions company Redbrook for $44.8m.