Israel's Frutarom buys U.S.-based Hagelin for $52.4 mln
TEL AVIV Dec 12 (Reuters) - Israeli flavourings and specialty ingredients company Frutarom Industries has acquired U.S. based Hagelin & Co for $52.4 million in cash to expand its product portfolio in the area of soft drinks and other beverages.
The acquisition was financed through short-term bank financing, Frutarom said on Thursday.
Just last month Frutarom announced the acquisition of 75 percent of Russia's Protein Technologies Ingredients for $50.3 million in cash. This was followed by the $12.5 million acquisition of Guatemalan flavour company Aroma SA.
Hagelin, which employs 84 workers, develops, produces and markets flavours and unique flavour technologies for the food industry, with an emphasis on the growing area of beverage flavours. Hagelin's sales in 2012 rose 7 percent to $24.2 million.
Hagelin has higher margin rates than those of Frutarom's flavours' division, the most profitable of Frutarom's activities, into which Hagelin's activity will be integrated.
"Hagelin has distinct competitive advantages and specialises, among other things, in the development of advanced flavour technologies in the areas of sodium reduction, sugar and calorie reduction and flavour enhancement," Frutarom said.
Hagelin's customer base includes leading international food and beverage manufacturers as well as local food and beverage manufacturers in the United States, Great Britain, Central and South America and Africa. The acquisition is expected to expand Frutarom's customer base.
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