Frutarom Industries acquires Inventive Technology and Prowin International for $17m

Frutarom Industries acquired 100% of the share capital of Hong Kong-based companies Inventive Technology and Prowin International for $17m.

These two firms shall henceforth be called Inventive, stated Frutarom.

The acquisition agreement includes a mechanism for future consideration, conditional on the company’s business performance over the three-year period, following the acquisition.

Frutarom has funded the transaction using bank loans.

Founded in 1998, Inventive is engaged in the development, manufacture and marketing of flavours and flavour inclusions through the application of new solutions and technologies.

Its flavour solutions are used in fruit components, chocolate, grains and nuts, dairy products, ice creams, pastries, and beverages.

Sales of Inventive touched $13.7m in the 12 months ending October 2015.

Inventive has manufacturing, research and development, and marketing facilities at Zhàoqìng in southern China where it has excess production capacity, as well as an R&D and sales center in Shanghai, and sales and marketing offices in Hong Kong.

With a wide customer base, including blue-chip food and beverage makers, and leading Chinese food and beverage manufacturers, its products are sold in China, Southeast Asia, the Middle East, and South America.

Inventive’s founders will continue in their roles of managing the company.

Last month, Frutarom Industries signed an agreement to acquire 75% of the share capital of AMCO, a Polish savoury flavour solutions firm, for $20.7m, making this the Israeli flavours company’s eleventh acquisition in 2015, as it charts a strategy of global expansion.

The agreement also includes an option for buying the remaining balance of shares, beginning two and a half years after the closing date of the deal, at a price based on the company’s performance.

Frutarom will take out a bank loan to make the transaction, which will be closed in the next few weeks.

Established in 1998, AMCO has an R&D and sales and marketing centre, besides a production facility in Warsaw, Poland.

AMCO has an employee count of 70, of which 12 are involved in R&D.

AMCO develops, produces and markets savoury flavour solutions, which include seasoning blends, marinades, and functional ingredients for the food industry.