09
24 2010
Frutarom Buys Natural Plant Extract Producer
Frutarom Industries (Haifa, Israel) says it has acquired natural plant extract maker RAD Natural Technologies (Petah Tikva, Israel) for $4.1 million in cash. RAD produces natural plant extracts with anti-oxidant properties for use in food, dietary supplements, and cosmetic products. The deal includes fixed assets, inventory, agreements, orders, goodwill intellectual property, and expenses, Frutarom says. RAD will be entitled to an additional unspecified payment if the accumulated sales for its products in 2008 and 2009 are more than $4 million, Frutarom says. RAD will receive an additional $4.9 million if the accumulated revenues for its products in 2008 and 2009 exceed $11.1 million, Frutarom says. RAD's sales totaled $1.2 million in 2006, and $900,000 for the first half of 2007. RAD will be merged into Frutarom's existing Israeli flavors operations, the company says. The deal is Frutarom's seventh this year. The company most recently bought flavors and fragrances producer Gewurzmuller (Stuttgart, Germany) and starter cultures maker Blessing Biotech (Stuttgart) for a combined total of $67 million. The deals will strengthen Frutarom's savory flavors and seasonings products for meets and other processed foods, Frutarom says. Frutarom paid $4 million in cash in July to purchase Abaco (Eastanollee, GA), a producer of "unique fine ingredients" for used in food products. Frutarom bought two Israel- based food ingredients makers earlier this year. It acquired food ingredient and dietary supplement producer Adumim Food Additives in June for about $4.3 million, and flavors compound maker Raychem Be'erot Yitzhak Food Industries in August for $1 million, plus $1.2 million in debt. Frutarom bought flavors makers Belmay (Wellingborough, U.K.) and Jupiter Flavors (Wirral, U.K.) for $17.1 million and $2.8 million, respectively in April.
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