HAIFA, IsraelFrutarom Industries has acquired U.S.-based CitraSource, a company specializing in citrus specialty ingredients, for $7.5 billion. The deal will strengthen Frutarom's position as a leading player in the R&D, production and sale of citrus specialty, an important ingredient of flavor solutions and many food and beverage products.
The acquisition also supports Frutarom's strategy of expanding growing its U.S. activity and developing value-added natural solutions in line with global market trends and with the needs of its flavors, food and beverage customers.
CitraSource's revenues in 2013 were about $7 million, and its customers include leading global flavors, food and beverage players. CitraSource's expertise across all ranges of citrus (orange, grapefruit, lemon, lime and tangerine) will expand Frutarom's natural ingredients portfolio. The transaction includes CitraSources manufacturing facility and a refrigerated tank farm for storing different types of raw materials including citrus specialty, as well as inventory. These will be integrated into Frutarom's global supply chain and production infrastructure and will contribute to the expansion and strengthening of Frutarom's global purchasing system.
CitraSource managers, Niv Ben Yehuda Randy Aulick, have extensive experience in R&D, operations, purchasing, sales and marketing of specialized citrus and bring with them extensive worldwide contacts in the global citrus industry. Ben Yehuda and Aulick will continue managing CitraSource activity, supporting Frutarom's efforts in growing its global citrus business. CitraSource's activity will be consolidated into Frutarom's Fine Ingredients Activity.
In November 2013, Frutarom announced its $12.5 million acquisition of Guatemalan flavor company Aroma SA and the acquisition of 75% of the share capital of the Protein Technologies Ingredients Group (PTI Group) for $50.3 million in cash.