Frutarom to acquire 75% stake in Russian flavours company

Israel-based Frutarom Industries Ltd, providers of flavours and fine ingredients, has signed an agreement to acquire 75% stake in Russian firm, Protein Technologies Ingredients Group (PTI Group), for $ 50.3 million. PTI has net assets valued at above $40 million and no debt.
 
PTI Group, which was established in 1996, is engaged in the development, manufacture and marketing of unique and innovative savoury taste solutions (the non-sweet spectrum) that include flavours, seasoning compounds and functional raw materials for the food industry (including unique protein-based ingredients, which are manufactured using advanced technology), with a special emphasis on the processed meat and convenience food industry.
 
ALSO READ: Tata Chemicals plans to commission nutraceutical plant in December

The PTI Group operates two production sites near Moscow and a new sales and marketing R&D centre in Moscow that includes development and application labs and 25 distribution centres across Russia and neighbouring countries. Following the acquisition, Frutarom will become one of the few global players having substantial production sites, sales & marketing network and R&D centre in Russia.

PTI’s activity is largely synergetic to Frutarom’s global savoury business, which grew substantially over the last few years due to the acquisition of the savoury business of Nesse, Gewurzmuller and the savoury business of Christian Hansen, which were acquired by Frutarom in 2006, 2007 and 2009, respectively, the acquisitions of EAFI, the savory business of Rieber and FSI in 2011, the acquisition of Savoury Flavours and Etol in 2012 and the acquisition of Jannderee in 2012. The acquisition of PTI will enable Frutarom to expand the range of savory products and broaden its activity and market share in developing and developed countries.