Frutarom Industries, the Israeli flavorings and specialty ingredients company, said Thursday it had acquired U.S.-based Hagelin & Company for $52.4 million (183.8 million shekels) 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.
Just last month Frutarom said it acquired 75% of Russia’s Protein Technologies Ingredients for $50.3 million in cash. This was followed by the $12.5 million acquisition of Guatemalan flavor company Aroma SA.
Hagelin, which employs 84 workers, develops, produces and markets flavors and unique flavor technologies for the food industry, with an emphasis on the growing area of beverage flavors. Hagelin’s sales in 2012 rose 7% to $24.2 million.
Hagelin has higher margin rates than those of Frutarom’s flavors’ division, the most profitable of Frutarom’s activities, into which Hagelin’s activity will be integrated.
“Hagelin has distinct competitive advantages and specializes, among other things, in the development of advanced flavor technologies in the areas of sodium reduction, sugar and calorie reduction and flavor 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.