Frutarom buys citrus solutions provider CitraSource

Israeli firm Frutarom has announced the takeover of citrus speciality solutions provider CitraSource, as it continues to execute its strategy of achieving rapid and profitable growth.

As per the agreed terms, the company will pay $7.5m and an additional payment conditional upon CitraSource’s performance during 2014-2018.

The acquisition is in line with Frutarom’s strategy to expand its US activity and develop value-added natural solutions tailored to the needs of its flavours, food and beverage customers.

It includes a manufacturing facility and a refrigerated tank farm for storing raw materials, including citrus speciality and inventory.

The acquired assets will be integrated into Frutarom’s global supply chain and production infrastructure and allow it to expand its global purchasing system, while CitraSource’s activities will be consolidated into Frutarom’s Fine Ingredients activity.

CitraSource activities will continue to be administered by its managers Niv Ben Yehuda and Randy Aulick.

The Israeli flavour firm expects the deal to accelerate its abilities in developing and producing advanced taste and health solutions as well as provide an important competitive advantage.

Frutarom president and CEO Ori Yehudai said, "Frutarom is a leading global manufacturer of speciality citrus solutions, and the acquisition of CitraSource is another step in the execution of our strategy of achieving rapid and profitable growth based on natural and healthy products.

"The strengthening of our control over the sourcing of our raw materials (back integration) which CitraSource brings us, will further enhance our leadership position in the market for citrus speciality ingredients and will allow us to expand our product portfolio and provide added value to our customers."

CitraSource caters to global flavours, food and beverage producers, providing a range of citrus products and solutions – orange, grapefruit, lemon, lime and tangerine.

The company’s knowhow, expertise and R&D capabilities will expand Frutarom’s natural ingredients portfolio as well as strengthen its sourcing, production and selling of citrus speciality ingredients.

CitraSource’s capabilities combined with Frutarom’s expertise will allow the latter to establish a global centre of excellence in citrus and cater to its customers with innovative added value products and comprehensive solutions.

Frutarom stated that it will continue to implement its rapid and profitable growth strategy and pursue additional acquisitions that are synergistic to its operations.

---

Image: CitraSource provides a range of citrus solutions, including orange, grapefruit, lemon, lime and tangerine. Photo courtesy of satit_srihin at FreeDigitalPhotos.net.