After eight acquisitions in 2016 and an impressive 12 in 2015, it looks like Frutarom is set to repeat, if not beat its M&A record this year.
The Israeli flavors and fine ingredients business has agreed to acquire a majority stake (60 percent) in Vietnamese Western Flavors Fragrances Production (WFF) for US$1.3 million.
The deal includes an option to purchase the remaining 40 percent within four years from completion and is anticipated to conclude within a matter of weeks.
“The acquisition of the Vietnamese flavors company WFF is the continuation of Frutarom’s implementation of its rapid and profitable growth strategy and fulfilment of its vision ‘to be the preferred partner for tasty and healthy success’. The acquisition will contribute to strengthening our position in Vietnam with the attaining of a significant relative advantage of having local R&D, sales production presence in one of Southeast Asia’s important growing markets,” said Frutarom President and CEO Ori Yehudai.
The acquisition is Frutarom’s third this year, and second this week with the purchase of French Rene Laurent for US$23.5 million announced on Tuesday, and a minority stake in Russian Pti back in February.