The Acquisition marks seventh completed by Frutarom so far this year.
Frutarom Industries Ltd. has signed an agreement to acquire Taura Natural Ingredients Holding Ltd. for approximately $70 million. Taura is an Australian company founded in 1973 as part of a New Zealand agricultural co-operative. Today, Taura has evolved into a leader in concentrated and texturized fruit ingredients.
Taura operates manufacturing plants in New Zealand and Belgium along with sales offices in the United States and in the United Kingdom, with an overall workforce totaling 130. The company engages in the development, production and marketing of solutions through its Ultra Rapid Concentration (U.R.C.) technology for delivering natural fruit ingredients in terms of flavor, functionality and consumer experience to a range of food products, particularly snacks, breakfast cereals, confectionery, convenience foods and baked goods.
According to Frutarom, Taura’s U.R.C. ingredients “raise the percentage of the final product’s fruit content, improve and enhance flavor and texture as well as lengthen shelf life using only natural ingredients for flavors, colors and preservatives — qualities benefiting from the rapidly growing trend toward healthier, more natural foods that are lower in sugar and calories.”
Taura generated sales of approximately $40 million in the 12 months ended March 31. The company’s management team, led by Peter Dehasque, will continue managing the company and driving its strategic expansion.
“The acquisition of Taura, a global leader in taste and fruit solutions, is the continuation of Frutarom’s implementation of its rapid growth strategy and the realization of its vision ‘to be the preferred partner for tasty and healthy success,’” said Ori Yehudai, president and chief executive officer of Frutarom. “This acquisition continues to solidify Frutarom’s position as one of the world’s top companies in its field and reinforces its presence and standing as a leading global producer for natural flavor and fruit solutions.
“The acquisition accelerates the growth of our activity in Asia-Pacific markets, with emphasis on Australia and New Zealand, while for the first time we will have R.&D., sales and marketing platforms and a production site located in New Zealand. Taura has long-established relationships with leading customers in these countries that can serve as a springboard for offering them our full unique range of products.”
Mr. Dehasque, c.e.o. of Taura, added that the move represents a milestone in fueling Taura’s continued profitable growth into the high value, high growth segments of natural foods and nutritional snacks.
“Taura’s U.R.C. made, fruit-based building blocks have a strong complementary fit to Frutarom’s activities in natural flavors, fine ingredients and fruit solutions,” Mr. Dehasque said. “We will significantly enhance our access to a whole raft of natural raw materials that can easily be integrated into our U.R.C., fruit-based materials laying a solid foundation for leading edge innovation for years to come. Having access to Frutarom’s strong scientific and technological expertise will no doubt lead to cross-fertilization and boost our highly specialized portfolio of innovative products further.
“Through its global footprint and infrastructure, Frutarom will enhance Taura’s presence dramatically in key growth markets, untapped geographies, new business segments and new customers and will set the scene for solid growth in the U.S. market, one of our key strategic imperatives.”
The acquisition of Taura is the seventh acquisition Frutarom has completed this year. The company earlier acquired Ingredients Naturales Seleccionados SL of Spain (Ingrenat), which specializes in plant extracts, and FoodBlenders Ltd., which is based in the United Kingdom and develops, manufactures and markets savory systems. The company also bought Markovci, Slovenia-based Vitiva, which specializes in the research and development, production, marketing and sales of plant extracts and naturally-sourced colors.