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Frutarom acquires Austrian savoury flavor maker Wiberg for $130.4m

Published 15 December 2015

Israel-based food ingredients company has acquired Austria-based savoury flavor maker Wiberg for $130.4m, marking its largest acquisition ever.

Frutarom acquisition

The move is the latest addition to its 12 acquisitions undertaken in 2015 to bolster its position in savoury ingredients segment.

Frutarom's acquisition includes 100% shares of Sagema GmbH and Wiberg GmbH of Germany, which includes 50% ownership of Wiberg's Canadian subsidiary and 51% ownership stake in a Turkish company of Wiberg.

The transaction is expected to be financed using bank debt. The acquisition process is slated for completion subject to approval from German and Austrian antitrust bodies. Frutarom hopes to gain this approval at the beginning of 2016.

Wiberg, which was founded in 1947, specializes in specialty and innovative savory solutions comprising flavor extracts, seasoning blends and functional ingredients for the food industry, with special focus on processed meats and convenience foods. Its activity is also focused on providing innovative culinary solutions for restaurants, catering firms and chefs.

Wiberg employs 670 people at five production sites across the world. It is headquartered in Austria and the company has sales and marketing platforms spread across 70 countries including Europe, North America, Africa and Asia.

Frutarom intends to synergise its activities with those of Wiberg's in various countries to achieve operational efficiencies along with optimal savings which are estimated at $12m annually.

Wiberg operations will now be added to the global purchasing system being developed by Frutarom.

Frutarom Group president and CEO Ori Yehudai said: "The Wiberg acquisition is the largest strategic acquisition we have carried out so far and the first we'll be carrying through in 2016. This acquisition constitutes an important milestone for Frutarom Group's continuing implementation of its rapid growth strategy and the realization of its vision 'to be the preferred partner for tasty and healthy success' while establishing our position as one of the world's largest, foremost and fastest growing companies in the fields of taste and health.

"Wiberg will also facilitate the acceleration of our penetration into the savory market in North America through its Canadian-based activity, which also has R&D labs, a factory and a sales platform on the West Coast of the United States, and augmenting the activity of BSA of Canada which we acquired earlier this year."

Image: Frutarom continues its acquisition spree. Photo: Courtesy of tuelekza/FreeDigitalPhotos.net.