Last month, multinational flavour and fragrance company Frutarom announced that it had signed an agreement for the purchase of flavouring company Unique Flavors South Africa for about $6.7-million (R90-million).
Unique Flavors engages in the development, production and marketing of flavours, with emphasis on savoury flavours and sweet taste solutions and has grown in recent years at a rapid pace. The company’s sales volume in the 12 months ending January 31 this year amounted to an estimated $9-million (R131-million).
The purchase agreement includes provision for future consideration based upon Unique Flavors’ future business performance. The company has a research and development (R&D), production and marketing site in Pretoria near Frutarom’s new South African site.
It has a customer base in South Africa and other emerging markets in the sub- Saharan Africa region such as Ghana, Malawi, Zimbabwe and Mozambique.
Unique Flavors has a workforce of 64 people and its activity is synergetic to Frutarom’s flavours activity in Africa, which has grown significantly in recent years, exceeding the market growth rate.
Frutarom states it aims to merge activities, including combining R&D, sales and marketing, purchasing, production and supply platforms.
The management and CEO of Unique Flavors will be integrated into Frutarom’s management in Africa to facilitate further growth in the region.
This acquisition is Frutarom’s second purchase in Africa. In 2013, Frutarom purchased flavour company JannDeRee.
In recent years, Frutarom has made efforts to expand its activity in Africa.
The company continuously aims to improve its manufacturing infrastructure, local and global R&D and marketing capabilities while capitalising on the synergies generated by integrating purchased companies.
Last year, Frutarom inaugurated a new production plant and R&D centre in Johannesburg to accommodate the markets in the region.