Frutarom signs agreement to acquire Redbrook Ingredients

Israeli ingredients company Frutarom Industries has signed an agreement to acquire Ireland-based ingredients supplier Redbrook Ingredients Services for approximately €40m ($44.8m).

The transaction is being financed through bank debt.

The purchase agreement includes an additional consideration based on Redbrook’s future business performance.

Frutarom Group president and CEO Ori Yehudai said: “The acquisition of Redbrook is the continuation of the implementation of Frutarom Group's rapid profitable growth strategy and the realisation of its vision 'to be the preferred partner for tasty and healthy success'.

“This is an important acquisition in establishing Frutarom’s standing as one of the world’s largest and leading companies for flavours, and strengthens its presence and position as a top global producer of natural, healthy and innovative savory taste solutions.

“The acquisition reinforces our market leadership in the UK and constitutes Frutarom’s first entry into the Irish market, also giving us the advantages of a global manufacturer having a local R&D, production and sales platform for shortening delivery times and improving service to customers of the region.”

Established in 1987, Redbrook Ingredients Services owns a R&D and sales and marketing centre, as well as a production site near Dublin, Ireland.

The Irish ingredients firm also has a production unit and R&D and sales and marketing center in Daventry, UK, near Frutarom’s site at Wellingborough.

The demand for savory flavours is growing in the global market because of the rise in standard of living, and changes in lifestyle and consumer habits, and Frutarom expects to address this demand.

Redbrook CEO Kieran Fox will continue in his role and join Frutarom’s Flavors activity management.