Frutarom acquires flavors company Aromco for $25M

Frutarom Industries reports an acquisition of 100% of Aromco for $25 million in cash, thereby completing its fourth acquisition of flavors companies since the beginning of 2011.

Aromco develops, manufactures and markets flavors for the beverage, dairy, confectionary, bakery and savoury markets with annual sales turnover growing impressively in recent years and achieving $13 million in 2010.

Aromco's owner, Keith Brown, founded the company in 1985 focusing on business development and penetrating into developing markets with high growth potential in Eastern Europe, Africa and Asia, as well as building a market share in the UK.

Through the acquisition, Aromco will enable Frutarom to broaden its activity and market share in these developing markets, which enjoy high growth rates, as well as to strengthen its current product supply chain.

Frutarom will also utilize Aromco's innovation activities in flavor creation, development and application.

Aromco's existing operational activity in England, which employs 40 people, will be used to strengthen the merged activities using Frutarom's global organization giving operational and cross selling synergies.