Frutarom completes Etol takeover bid

Israeli flavour and fragrance company Frutarom has completed its takeover bid for Slovenian Etol, increasing its total stake in the flavours company by 34.2% to 97.6% for €141 per share.

In January and February, Frutarom acquired 63.4% stake in Etol, through transactions made on and outside the Slovenian stock market, for approximately €22.3m.

Frutarom paid a total amount of €34.6m to acquire 97.6% of Etol’s shares.

Over the next few weeks, Frutarom plans to delist Etol from the Slovenian stock exchange and acquire the balance of shares in Etol from the remaining shareholders.

Frutarom president and CEO Ori Yehudai said the acquisition significantly expands the company’s operations in Central- and Eastern Europe and strengthens its presence and market share in these fast growing markets.

"Etol’s proven abilities and many years of experience in the flavors market, with its specialization in natural products in beverage bases, are a strategic asset for Frutarom," Yehudai added.

Etol, which has a manufacturing and marketing site in Sofia Vas, Slovenia, develops natural flavour products based on local fruits of the region for the food and beverage industry.

The company is also actively involved in developing bases for beverages, which Frutarom intends to expand further.

Etol’s products are sold to a wide customer base in Central and Eastern Europe and in emerging markets, including Russia, Poland, the Ukraine, Turkey, Croatia, Slovenia, Serbia, Belarus, Slovakia, Macedonia, the Czech Republic, Kazakhstan as well as developed countries such as the UK.

This deal marks Frutarom’s eighth acquisition since the beginning of 2011. Last month, Frutarom bought Brazilian flavour company Mylner Indústria E Comércio in a deal worth BRL27.1m ($15.7m).

Frutarom, headquartered in Haifa, Israel, develops, produces and markets flavours and speciality fine ingredients.