Haifa, Israel-based multinational flavorings and specialty ingredients company Frutarom Industries Ltd. (TASE/LSE:FRUT), announced the acquisition of 95% of Canada’s Investissements BSA Inc. for CAD 42.75 million ($ 35.6 million) in cash. The acquisition is expected to be completed in the next few weeks.
Ori Yehudai, president and CEO of Frutarom Group, said: “The acquisition of the BSA group is the fifth acquisition we have executed this year and we continue to search out and perform further strategic acquisitions.” Until now Frutarom has been a market leader for savory solutions in Europe. The acquisition of BSA is expected to boost its position in North America and India. “These days we are completing construction of a new modern plant in China which will also be capable of producing savory products and is designed to provide a response to customer needs in this field in the Asian market,” added Yehudai, who began his career with Frutarom in the sales department in 1986, and became its CEO in 1996.
Montreal-based BSA, was founded in 1989 by Marcel Baril, and has 140 employees. Its main activities include the development, production and marketing of non-sweet ‘savory’ flavor solutions that include seasoning blends and functional ingredients for the food industry, with particular focus on the areas of processed meats and convenience foods. BSA sales in 2014 reached approximately CAD 37 million ($34 million). In addition to its North American operations, BSA holds a 90% stake of an operation in India, which will be joined with Sonarome, another Indian company acquired by Frutarom last week.
Frutarom develops, manufactures, and markets flavors and fine ingredients used in food and beverage products, pharma-nutraceuticals, flavors and fragrances, and personal care products and cosmetics, as well as other products. The company operates through two divisions, Flavors and Specialty Fine Ingredients. The Flavors division provides sweet and savory flavor solutions, seasonings, and food systems. The Specialty Fine Ingredients division offers natural flavor extracts, functional food ingredients, pharma/nutraceutical extracts, and algae based biotechnical products; and aroma chemicals specialty essential oils, unique citrus products, natural gums and stabilizers. The company also engages in the trading and marketing of various raw materials of flavors and fine ingredients. It operates in Europe, North America, Latin America, Israel, Asia, and Africa. The company was formerly known as Frutarom NewCo (1995) Ltd. and changed its name to Frutarom Industries Ltd. in 1996. Frutarom Industries Ltd. was founded in 1933 and is based in Haifa, Israel. It has approximately 3,100 people worldwide.
Frutarom Industries Ltd. is a public company whose stock is listed on the Tel Aviv and London Stock Exchanges. Frutarom is included in the Tel Aviv 75 Index. Its major shareholder (approximately 37%) is ICC Industries Inc., a New York-based holding company owned and chaired by billionaire John J. Farber, who is also the chairman of Frutarom, on whose board his wife Maya and daughter Sandra all sit.
ICC Industries Inc. is a privately-held company with operating businesses active in worldwide trading, distribution, marketing and manufacturing primarily of chemicals, plastics, and related products. Founded in 1950 as a one-person trading activity in New York City, ICC’s origins reach back to Central Europe during the early part of the twentieth century, when, shortly after World War I, Eugene Farber founded The United Factory for Varnishes and Paints in his home town of Timisoara, Romania. The company was nationalized after the Second World War, and Eugene and his family left Romania. Eugene’s son, John Farber, who was at the time a young chemist, made his way first to the newly-formed State of Israel and then to New York City to pursue his doctorate in polymer chemistry. There, he joined his father- in- law, Leslie Kleyman, at his small textiles export-import business, and began sourcing chemicals and selling into the European market. Ultimately, the family’s former factory in Romania, now known as Azur, was privatized and a controlling interest was sold to ICC in the 1990’s. Today, ICC remains a family-owned company.