New acquisition for Frutarom

Israeli flavour and ingredients company Frutarom has signed an agreement to acquire the assets and business of the American Company Flavors Specialties for $17.2 million, financed through bank loans.

The agreement includes a clause that could increase or decrease the value of the deal to $27 million or $13.15 million based on earnings in 2009 and 2010. Ori Yehudai, CEO of Frutarom, says he expects the acquisition to bring cross-selling opportunities, as well as strengthen R&D capabilities in flavours, functional foods and health-related food and beverage products.