Frutarom to acquire Hagelin

HAIFA, Israel - Frutarom Industries Ltd. announced its fourth acquisition this year of US-based Hagelin, a specialist in the development of advanced flavour solutions for the reduction of salt, sugar and calories in beverages. The company will acquire 100 per cent of Hagelin’s share capital for a cash consideration of $52.4 million.

Established in 1967, Hagelin has a sales turnover totalling $24.2 million in 2012, up 7% from 2011. Its customer base includes leading international food and beverage manufacturers and local food and beverage manufacturers in the US, the UK, and in developing markets such as Central and South America and Africa. The company has three R&D, production and marketing sites, two of them in the US (in New Jersey and in Georgia), and one in the UK. Its business is synergistic to that of Frutarom in the US, which has grown significantly in recent years (43% in 2012) from a combination of rapid and profitable organic growth and acquisitions. Frutarom has three production sites in the US as well as production sites in the UK.

The buyout will strengthen Frutarom’s foothold in the US as well as speed up its entrance into Central and South America and Africa.  It will substantially expand the company’s business in the beverage flavour sector.

Frutarom has thus completed four acquisitions in 2013, with a total sales turnover of $147 million in 2012, investing a total of $120 million.

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