Frutarom Industries Ltd, one of the world's 10 largest companies in the field of flavors and specialty fine ingredients, has announced the exercise of its option for the purchase of the remaining 5 percent balance of share capital of Les Ingredients Alimentaires BSA Inc. of Canada for approximately US$ 2 million and this is further to the purchase of 95 percent of BSA’s share capital in May 2015.
BSA was founded in 1989 and its main activity is the development, production and marketing of unique and innovative savory taste solutions (the non-sweet spectrum of flavors) that include seasoning blends and functional ingredients for the food industry, with particular focus on the areas of processed meats and convenience foods.
BSA has a large and efficient production site in Montreal and around 150 employees. The acquisition of BSA has greatly strengthened Frutarom’s position in the field of savory in North America.
Since the acquisition BSA has exhibited double-digit growth along with significantly improved profitability margins.
The partners now managing BSA successfully will continue in their managerial roles with the company.
“Frutarom sees great strategic importance for rapid growth in the field of savory flavors in which now holds a leading market position, and is focused on developing unique innovative natural and healthy products with high added value at its sites throughout the world,” says Ori Yehudai, President and CEO of Frutarom.
“The global market for savory flavors is growing due to the rise in standard of living and changes in lifestyle and consumer habits bringing about increased demand for processed and convenience foods both for home consumption and for eating out.”
“Frutarom embarked about 10 years ago on a strategic course of action to significantly build up its global savory activity by acquiring leading companies in their fields possessing unique solutions and a strong position in strategic target markets.”
“We are pleased with the success of the BSA acquisition which has contributed to significantly strengthening our presence in field of savory taste solutions in Canada and North America,” adds Yehudai. “The acquisition materially strengthened the technological capabilities, the product portfolio we offer our customers, and our broad local and global customer base. BSA is one of the leading local manufacturers in the Canadian market and, as we expected, the combination of a leading local manufacturing company with the support of a global company like Frutarom has strengthened our market leadership and accelerated the pace of our profitable internal growth.”
He adds how since the acquisition, BSA has show growth in sales while significantly improving its profit margins and the company intends to continue exploiting and combining BSA’s R&D and sales and marketing platform in Canada.
And he infers that there may be more acquisitions to come.
“We are working on seeking out and executing additional strategic acquisitions of companies and activities in our fields of activity, with special focus on high-growth markets, and we have a strong pipeline of potential strategic acquisitions.”
“We will continue carrying out our rapid profitable growth strategy, which is based on profitable internal growth and strategic acquisitions, in order to achieve the targets we recently set: sales of at least US$ 2 billion with an EBITDA margin of over 22 percent in our core activities by the year 2020.”
