Frutarom takes over flavours specialist Aromco

Israel-based flavours company Frutarom has acquired an 100% of Aromco Ltd. for USD 25m (GBP 15m) in cash.

By this transaction, Frutarom completes its fourth acquisition of flavors companies since the beginning of 2011.

Aromco develops, manufactures and markets flavours for the beverage, dairy, confectionary, bakery and savoury markets with annual sales turnover growing impressively in recent years and achieving USD 13m (GBP 7.7m) in 2010.

Aromco’s owner, Keith Brown, founded the acquired company in 1985 focusing on business development and penetrating into developing markets with high growth potential in Eastern Europe, Africa and Asia as well as building a market share in the UK.

Acquiring Aromco will enable Frutarom to broaden its activity and market share in these developing markets, which enjoy high growth rates, as well as to strengthen its current product supply chain.

Additionally, Frutarom will utilize Aromco’s extensive and excellent Innovation activities in flavor creation, development and application. Aromco’s existing efficient operational activity in England, employing 40 people, will be used to strengthen the merged activities using Frutarom’s Global organization giving operational and cross selling synergies.