HERZLIYA, ISRAEL — Frutarom Industries Ltd. has purchased 79% of the shares of the Spanish company Nutrafur S.A., which specializes in the research and development, manufacture, and sales and marketing of plant extracts bearing antioxidant properties or scientifically proven health qualities. Nutrafur extracts active components from vegetation, particularly rosemary, olives and citrus.
The shares were purchased based on a company value of about $14.5 million. Bank credit will finance the transaction, said Frutarom, based in Israel, when the deal was announced Sept. 6. Nutrafur sales in the 12-month period ended in June were about $13 million. Nutrafur has a research and development and sales center, as well as a manufacturing site, in Murcia, Spain.
“Over the last few months Frutarom has made a major leap forward in strengthening its position as a leading global producer of natural specialty ingredients, and the acquisition of Nutrafur fits in well with our rapid and profitable growth strategy while deepening and expanding Frutarom's activity in the growing field of natural plant extracts and antioxidants for food products,” said Ori Yehudai, president and chief executive officer of Frutarom Group. “We will continue investing in considerably expanding our global activity in this important and growing field both by means of strategic acquisitions and through collaboration with universities, research institutes and innovative product development startup companies.”Frutarom bought other plant extract companies recently. The company acquired Vitiva, based in Slovenia, in December and Ingredients Naturales Seleccionados SL of Spain (Ingrenat) in February.