Frutarom acquires Brazilian flavour company

Israel-based flavour and fragrance company Frutarom has forayed into the South American market with the acquisition of Brazilian flavour company Mylner Indústria E Comércio in a deal worth BRL27.1m ($15.7m).

Frutarom plans to use Mylner’s production, development, sales and management capabilities as a base to develop its business further in the continent.

Frutarom president Ori Yehudai said: "The acquisition of Mylner represents an important base which will strengthen and boost Frutarom’s growth in the flavour solutions market in Latin America, and will further enhance its position as a leading global flavours manufacturer and supplier.

"After five acquisitions in 2011, Frutarom continues to pursue additional strategic acquisitions and to implement its rapid growth strategy with this third acquisition since the beginning of 2012", Yehudai added.

Mylner, established in 1974, develops, manufactures and markets flavour solutions, focusing primarily on sweet flavours for beverages and baked goods, and natural flavour products.

The Brazilian company has a development, production and marketing facility in Sao Paulo and its customer base includes food manufacturers from high growth potential markets of Latin America.

Over the last four years, Mylner’s had registered impressive growth rates, with sales soaring by 43% – from BRL3.2m ($6.8m) to BRL19m($11.4m) in 2011.

The acquisition was financed through bank credit and, according to Frutarom, sales in emerging markets in Latin America are expected to grow further due to the shift to processed foods and beverages, as well as changes in consumer demands.

The Israeli company also announced plans to strengthen its research and development, production, marketing and sales in the region and in other important target countries in Latin America through additional strategic acquisitions.

Earlier this year, Frutarom acquired a 56% stake in Slovenian flavours company Etol for €19.6m ($24.9m), to expand its natural flavours portfolio.

Frutarom, headquartered in Haifa, Israel, develops, produces, and markets flavours and specialty fine ingredients, and operates plants in the US, UK, Switzerland, Germany, Israel, China, South Africa and Turkey.