Frutarom secures majority stake in Russian ingredients firm

Frutarom has signed an agreement to take over a controlling stake of 75% in Russia’s Protein Technologies Ingredients (PTI) in a $50.3m all-cash deal.

Established in 1996, PTI is a manufacturer and marketer of savoury taste solutions, including flavours, seasoning compounds and functional raw materials for the food industry, primarily focusing on the processed meat and convenience food segments.

In 2012, the company’s sales turnover rose 8% in 2011 and 5.2% in 2012, with sales of $111m, and an EBITDA of $10.5m.

The savoury taste solutions business, which constitutes PTI’s core business, recorded revenues of $60m in 2012 with operating profit margins similar to those of Frutarom’s Flavor activity, while its trade and marketing segment, which sells raw materials that are not manufactured by PTI, recorded sales of $50m in 2012.

The company employs about 500 people across its two production sites and a new sales and marketing R&D centre in Moscow which comprises development and application labs and 25 distribution centres across Russia and neighbouring countries.

Frutarom president Ori Yehudai said, "The acquisition of PTI continues the implementation of the rapid growth strategy of the Frutarom Group, and its vision to be the preferred partner for tasty and healthy success.

"This acquisition reinforces Frutarom’s technological capabilities and expands both the range of savoury flavours (non-sweet tastes) and functional products offered to worldwide customers and its wide global customer base."

The takeover of PTI is another step in the establishment of Frutarom’s leadership in the global savoury business, and it will continue to expand its savoury business in other countries, including through acquisitions.

It will allow the Israeli firm to expand its range of savoury products and broaden its activity and market share in developing and developed countries.

Frutarom, headquartered in Haifa, Israel, develops, produces and markets flavours and speciality fine ingredients.

The company’s products are produced at its plants in the US, UK, Switzerland, Germany, Israel, China, South Africa and Turkey.

---

Image: The acquisition allows Frutarom to expand its savoury products range in developing and developed countries. Photo courtesy of artur84 at FreeDigitalPhotos.net.