Frutarom again on acquisitions trail

By Alex McNally

- Last updated on GMT

Related tags: Blood sugar, Frutarom

Ingredients company Frutarom has today confirmed it is in talks to
buy Adumim, a move which if successful would strengthen the firms
hold in the functional ingredients arena.

Frutarom has hit the headlines with an avalanche of company acquisitions this year alone, including UK ingredient firms Jupiter and Belmay and Israeli group Raychan. A spokesperson told talks with Adumim were at an early stage. She said: "At the moment we are just in negotiations and nothing is certain." ​ The company declined to comment further, adding it would be "premature"​ to speculate on what would happen next or talk about Frutarom's interest in Adumim. There has been no indication of the asking price, but it has been reported that Adumim's net profit for the first quarter of this year was NIS 560,000 (€97,083.85). Adumim, also an Israeli company, specialises in supplying natural ingredients to the nutraceuticals and functional food markets in both the Israeli and international markets. It also provides emulsifying stabilizer Adocream AP-66 to form low fat ice creams and sherberts in the food industry. Other products from Adumim include FenuPure and tea-based Kombujam. FenuPure is a naturally extracted concentrated and deodorized form of the plant Fenugreek, which is said to help people with diabetes control their blood sugar level. Kombujam is a jam form of the herbal Kombucha tea, which is considered to help restore the body's equilibrium and chemical balance. Earlier this month Frutarom signed an agreement to acquire fellow Israeli firm Raychan Food Industries, which was its third buy in the flavours arena this year. The Raychan takeover, worth more than US $1m, was said by Frutarom to bolster its expertise in the area of savoury flavour compounds. Raychan was also Frutarom's thirteenth company buy-out in 15 years and this latest round of talks shows the shopping spree is not yet over. Two months ago Frutarom acquired UK flavours firm Jupiter, just weeks after buying UK firm Belmay for some €12.8m. The move gave Frutarom a firmer foothold in the UK market. Frutarom, which has been going since 1933, last year reported sales of $287m, to which the flavours division contributed 65.1 per cent. The remainder was generated by the fine ingredients division. In a recent interview with Frutarom chief executive Ori Yehudai said: "Frutarom believes that to continue growing, it must have strong and experienced management."​ To this end, a potential acquisition should have a strong management team at is helm, with which Frutarom works to develop the new strategy and vision. The company is now said to hold the number seven spot in flavours worldwide.

Related topics: Ingredients

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