Frutarom snaps up Savoury Flavours for €4.6m and eyes further acquisitions
Savoury Flavours recorded turnover of €5.1m ($6.6m) in 2011, a 28% increase on the previous year.
The company was founded in 1999 and supplies flavours for the snack food, sauce and prepared meals sectors of the UK and export food industry.
The firm has industrial units in Manningtree, Essex UK and occupies a 1,050m2 of racked warehousing across 10 units that features sampling laboratories and an applications kitchen.
The site is near another manufacturing site which Frutarom gained when it acquired British East Anglian Food Ingredients (EAFI) in February last year for (EAFI) for €3.7m ($4.8m).
The proximity of the two companies, which have similar product portfolios, is expected to allow for synergies between Savoury Flavours and Frutarom's savoury activities worldwide.
Strengthening savoury segment
Ori Yehudai, president and CEO of Frutarom said, "Frutarom is opening 2012 with an additional acquisition, which continues to strengthen its activities in the savoury segment in Europe and in developing markets.”
“This is an additional step towards strengthening Frutarom's position in the UK market, where Frutarom in currently a leading sweet flavours manufacturer,” he added.
He said there had been changes in consumer behaviour that had caused increased demand for processed and conscience foods. Frutarom, he said, has therefore identified the savoury segment as a growth driver.
"The acquisition of Savoury Flavours, following previous acquisitions, is an additional step towards strengthening Frutarom's leadership in this important segment,” he said.
Further acquisitions planned
Frutarom's has boosted its savoury portfolio in recent years with bolt-on acquisitions including Nesse in 2006, Gewurzmuller in 2007 and Chr. Hansen’s meat blends business in 2009.
Yehudai confirmed further acquisitions were planned.
“We intend to continue to invest in the substantial expansion of our activities in the savoury segment in additional destinations throughout the world, including through further acquisitions,” he said.