Frutarom Industries Ltd Acquires Flavors Company in South Africa
Frutarom Industries Ltd. ("Frutarom") hereby announces that today it signed an agreement through a subsidiary in South Africa to acquire 100% of the share capital of the South African flavors company JannDeRee (Pty) Limited ("JannDeRee") for approximately USD 5.2 million.
JannDeRee's turnover in 2012 came to approximately USD 5 million.
JannDeRee, founded in 1993, develops, manufactures, and markets flavors with an emphasis on savory flavors and sweet flavor solutions. JannDeRee, which has been growing rapidly over the last few years, has a research and development, production and marketing site in Johannesburg, South Africa, located adjacent to Frutarom's site in South Africa, and a wide customer base in South Africa and in other important emerging countries in the sub-Saharan region such as Malawi, Zimbabwe and Mozambique. JannDeRee's activities are synergetic with Frutarom's activities in South Africa in the field of flavors, which have grown at rates higher than the rate of market growth over the past few years.
Frutarom will take actions to integrate activities, including integration of R&D, marketing and sales infrastructures, purchase, production and supply infrastructures. JannDeRee's management, headed by the Managing Director, will become part of Frutarom's management in Africa, and they will act jointly for the acceleration of Frutarom's growth in the region.
The Company believes that the acquisition of JannDeRee will contribute to the expansion of Frutarom's product portfolio for countries in Africa, to the strengthening of its management and its research and development, manufacturing, marketing and sales capacities in the area of savory flavors (an area where Frutarom has not yet been active in Africa).
The acquisition was financed through independent resources and was completed at the time of signing.
It is to be noted that Frutarom does not consider this transaction as a substantial asset acquisition.
This report includes forward-looking statements, as defined by the Israeli Securities
Law - 1968. This forward-looking statement includes, inter alia, data, forecasts, goals, objectives, estimations and/or other information relating to future events or circumstances which may or may not be realized and which are not solely in Frutarom's control.
These forward-looking statements are based on estimates determined by Frutarom's management which are determined, among others, by the information available to the management at the time of publication, including estimates relating to the activities of Frutarom, objectives, goals, strategies, events and future intentions.
By their nature, forward-looking statements involve risk and uncertainty and are not guarantees of future performance. The realization or lack thereof of forward-looking statements will be determined by risk factors that characterize Frutarom's activities, changes in the environment and external factors that exert influence upon the Frutarom Group (including JannDeRee) and its activities.