Frutarom agrees to acquire Sagema of Austria and Wiberg of Germany

Frutarom Industries, a company focussed on flavours and specialty fine ingredients, has signed an agreement to acquire 100% of the shares of Austria-based Sagema, and Germany-based Wiberg for approximately $130.4m.

The acquisition of Wiberg also comprises its 50% stake in a Canadian subsidiary, as well as a 51% interest in a Turkish firm.

These assets will be collectively called Wiberg, stated Frutarom.

The sales of Wiberg for this year are expected to touch approximately $172m, with adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of around $19m.

The complete value of these assets was around $131m as of 31 December, 2014.

Frutarom is funding this transaction by utilising bank loans.

The transaction is expected to be completed by early 2016, following approvals from the German and Austrian antitrust authorities.

Established in 1947, Wiberg offers savoury solutions, which includes flavour extracts, seasoning blends and functional ingredients for the food industry, especially for processed meats and convenience foods. It also provides innovative culinary solutions for restaurants, catering firms and chefs.

Headquartered in Salzburg, Austria, the company has sales and marketing platforms in around 70 countries, with presence in Europe, North America, Africa and Asia.

The acquisition was made as Frutarom considers savoury flavors to be an important segment of its growth strategy.

Frutarom Group president and CEO Ori Yehudai said: "The Wiberg acquisition is the largest strategic acquisition we have carried out so far and the first we’ll be carrying through in 2016.

"This acquisition constitutes an important milestone for Frutarom Group’s continuing implementation of its rapid growth strategy and the realisation of its vision ‘to be the preferred partner for tasty and healthy success’ while establishing our position as one of the world’s largest, foremost and fastest growing companies in the fields of taste and health."