Frutarom announces takeover of flavour firm Hagelin

Frutarom has announced the takeover of US flavour company Hagelin in a $52.4m deal, as it continues to implement its rapid growth strategy.

Established in 1967, Hagelin is engaged in the development, production and marketing of flavours and flavour technologies for the reduction of salt, sugar and calories and improvement of the taste experience.

The company caters to the global food industry as well as to the beverage segment, and it operates three R&D, production and marketing sites – two in the US and one in the UK.

In 2012, it recorded turnover of $24.2m, a 7% increase compared with 2011.

The acquisition of Hagelin allows Frutarom to strengthen its presence in the emerging markets of Central and South America and Africa as well as expand its operations in the beverage flavours sector.

Frutarom stated that it will continue to implement its growth strategy, which combines organic growth with strategic acquisitions.

Frutarom president and CEO Ori Yehudai said that the acquisition of Hagelin will intensify Frutarom’s technological capabilities, particularly in the beverage flavours sector, and adds to its R&D capabilities, sales and marketing infrastructure and cross-selling opportunities.

Yehudai said, "This acquisition is yet another step in the growth of Frutarom’s profitable flavour business in the US, a market we identified as a key strategic target.

"Our US activity in recent years is exhibiting consistent organic growth that is at higher rates than the market’s average growth rates, and the acquisitions we made in the past few years accelerated this growth and increased our market share."

The latest deal comes after a series of acquisitions by Frutarom this year, including the takeover of JannDeRee in South Africa, PTI in Russia, and Aroma in Guatemala.