Frutarom buys US-based Scandia Citrus

Israeli flavours and specialty fine ingredients company Frutarom Industries Ltd has acquired the business operations and assets of the Florida (USA) based Scandia Citrus LLC, which specialises in the research and development, manufacture, and sales and marketing of specialty solutions in the field of citrus for leading global customers in the flavour, food and beverages markets, for approximately $ 6 million. Scandia's sales in 2014 totalled approximately $ 8 million.
 
This is Frutarom’s ninth acquisition in 2015, which includes Frutarom deal to buy 60% stake in Bangalore (India) based flavours and fragrances firm Sonarome for $17.2 mn.

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Scandia acquisition joins that of CitraSource last year which also specialises in citrus and whose production facilities and development labs are also situated in Florida not far from those of Scandia. Scandia's extensive knowledge in citrus, R&D and marketing capabilities, and its ingenuity which includes a unique technology for the molecular distillation of citrus oils, combined with Frutarom's experience, know-how, capabilities and pool of customers in this field which expanded significantly following the acquisition of CitraSource last year, will enable Frutarom to further strengthen its center of excellence in Florida in the field of citrus and to provide its customers innovative added-value products and comprehensive solutions matching their unique requirements.
 
Scandia also has global purchasing abilities in the field of citrus from specialty crop growing and supply sources, and combining these with Frutarom's capabilities will further reinforce Frutarom's position as a leading player in the research and development, manufacture and sales of specialty citrus products which constitute an important raw material in the development and production of many flavours and food and beverage products.
 
Frutarom will work towards fully capitalising on the many cross-selling opportunities arising from the acquisition along with combining all of Scandia's activity at its existing site in Florida, USA while attaining maximal savings and efficiency.
 
Ori Yehudai, president and CEO of Frutarom Group, said, “The improved back integration brought about with the acquisition of CitraSource last year will now be further reinforced with the acquisition of Scandia and help us continue establishing our position as a global leader in the citrus market while enhancing our offerings of innovative products and the service we provide our customers.”
 
The acquisition of Scandia provides Frutarom advanced R&D capabilities, unique technology, global purchasing capabilities with emphasis on North, Central and South America, and a leading and experienced management team, and it further enhances Frutarom’s presence in Florida – one of the worldwide centers for citrus. The acquisition will also help Frutarom to expand in the US and broaden its portfolio of natural products in response to market trends and the needs of customers in the flavours and food and beverages market.
 
Yehudai said, “The acquisition of Scandia joins the eight acquisitions completed since the beginning of the year and supports the continuing positioning of Frutarom as a leading player in the global market for flavours and specialty fine ingredients. We will continue implementing our rapid and profitable growth strategy, and our strong pipeline of acquisitions will permit the continued realisation and execution of further strategic acquisitions of companies and operations in our fields of activity."