Frutarom continues acquisitions with US Abaco

Israeli flavour and ingredients firm Frutarom acquired the company, located in Georgia, for $4mn (€2.9mn) and also assumed its debt of $1.1mn (€0.8mn). Yesterday, Frutarom finalized its purchase of Adumim, also for $4mn (€2.9mn), in a bid to help boost its development and production of medicinal plant extracts, vitamins and minerals for foods. Frutarom has taken Abaco on board with the aim of strengthening its presence in the US - which it says is a strategic market for the company - by expanding its product line and adding support staff. This acquisition is in fact the fifth one this year for Frutarom, which has operations in Israel, the US and the UK. "Frutarom will immediately integrate Abaco's activities with that of Frutarom USA while realizing and utilizing the extensive commercial and operational synergy that exists between Frutarom's and Abaco's operations in order to take maximum advantage of the cross selling possibilities while achieving maximum cost savings," said Ori Yehudai, president and CEO of Frutarom Group. Abaco specializes in ingredients for the flavor and fragrance industries, and Frutarom said it is especially looking to the company's development, marketing and sales team to boost its reach into the US market. The Georgia manufacturer claims to have hundreds of local, as well as multinational, clients for its services in the field of unique ingredients. Yesterday's purchase of Israeli firm Adumim is set to pad Frutarom's supply of natural ingredients to the nutraceuticals and functional food markets in both the Israeli and international markets. The take-over will also come with Adumim's 45.8 per cent share capital in NutraLease, a company set up by Adumim founder Nissim Garti. One of the products on offer from NutraLease is a nano-encapsulation technology which allows insoluble materials to be added to foods, beverages, medications and cosmetic products without adversely affecting their quality.

Frutarom continues acquisitions with US Abaco

As part of a rapid growth strategy, Frutarom announced its second acquisition in the space of two weeks - this time for US ingredients maker Abaco.

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