In a $6 million deal flavors and specialty fine ingredients company Frutarom Industries has purchased business operations and assets of US company Scandi Citrus LLC. Based in Florida, the company specialises in R&D, manufacture, sales and marketing of specialty solutions in citrus.
The purchase of Scandia will be Frutarom’s ninth acquisition in 2015, with Scandia reporting sales of $8 million in 2014 to leading customers in the flavour, food and beverage markets. Alongside its capabilities and knowledge of citrus it has a unique technology for the molecular distillation of citrus oil. Likewise the company has strong purchasing power in the citrus market, which, combined with Frutarom’s capabilities, will cement Frutarom as a leading player in the market. Scandi’s abilities include speciality crop growing and supply sources.
The acquisition of Scandi follows the purchase of CitraSource, which is also based in Florida and is a leading player in citrus. Frutarom aims to capitalise on the cross-selling prospects resulting from the acquisition.
Frutarom’s President and CEO Ori Yehudai said, “The acquisition of Scandia provides Frutarom advanced R&D capabilities, unique technology, global purchasing capabilities with emphasis on North, Central and South America, and a leading and experienced management team, and it further enhances our presence in Florida – one of the worldwide centers for citrus. The acquisition represents another milestone is the realisation of the strategy for both expanding in the US and broadening our portfolio of natural products in response to market trends and the needs of our customers in the flavors and food and beverages market.”