Leading Israeli flavour and food ingredients company Frutarom has acquired a US-based company CitraSource, that specializes in Citrus Specialty Solutions, for about $7.5 Million. The acquisition will strengthen Frutarom's position as a leading player in the R&D, production and sale of citrus specialty, an important ingredient of flavor solutions and many food and beverage products, company said.
The acquisition is finalized for a consideration of $7.5 million plus an additional future payment conditional upon CitraSource's performance in the years 2014-2018. This acquisition aims to accelerate Frutarom's abilities in developing and producing advanced taste and health solutions, giving Frutarom an important competitive advantage.
CitraSource's revenues in 2013 were about $7 million. CitraSource's customers include leading global flavors, food and beverage players. CitraSource's knowhow, expertise and capabilities across all ranges of citrus (Orange, Grapefruit, Lemon, Lime and Tangerine) will expand Frutarom's natural ingredients portfolio and together with CitraSource's worldwide sourcing network will add to Furtarom's leadership position in the market of production and selling of citrus specialty, an essential ingredient for flavors and many food and beverages products.
Ori Yehudai, President and CEO of Frutarom said, "Frutarom is a leading global manufacturer of specialty citrus solutions, and the acquisition of CitraSource is another step in the execution of our strategy of achieving rapid and profitable growth based on natural and healthy products. Frutarom started its activity in 1933 by growing and developing citrus based solutions in Israel. Citrus specialty remains an important part of our business and is considered an important contributor to our success. The strengthening of our control over the sourcing of our raw materials (back integration) which CitraSource brings us, will further enhance our leadership position in the market for citrus specialty ingredients and will allow us to expand our product portfolio and provide added value to our customers.”