Frutarom acquires 51% stake in Brazilian savoury solutions firm Bremil

Israeli flavours and speciality fine ingredients maker Frutarom has acquired a 51% stake in Brazil-based savoury solutions provider Bremil Indústria (Bremil) for approximately $30m.

The deal also grants Frutarom the option of acquiring the remaining stake in the Brazilian company, which will be available for five years from the date of the transaction’s completion.

Bremil was established in 1987 and primarily focuses on the development of savoury solutions for convenience foods, prepared foods and processed meats.

The company also provides seasoning blends, marinades, flavours, coatings and texture products, in addition to various food protection solutions.

Furthermore, Bremil also supplies taste and functional solutions for baked goods.

The company employs almost 250 personnel and operates two production sites, which are located in the southern and central regions of Brazil respectively.

The acquisition is claimed to support Frutarom’s strategy of expanding its global activity in the savoury solutions market.

Frutarom Group president and CEO Ori Yehudai said: “The acquisition of Bremil is a 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 strategic acquisition, which enables Frutarom to make an additional major leap forward in strengthening its global leadership in savoury solutions, as well as substantially reinforcing our position in the growing Brazilian market in particular, and in Latin America in general.”

The transaction was funded via bank debt.

Bremil’s founders and managers will continue to manage the business with a 49% stake following the acquisition.

Frutarom intends to expand Bremil’s activity into additional countries in the future, as well as capitalise on cross-selling opportunities for its products among Bremil’s customer base.