Frutarom buys up US flavors and fragrance player Abaco

By Simon Pitman

- Last updated on GMT

Related tags: Cosmetics, Marketing

The US subsidiary of Israel-based flavors and fragrance player
Frutarom Industries has bought Georgia-based Abaco for a $4m, in a
deal that takes the company one step closer to boosting its
position in the global market.

Abaco specializes in niche solutions for the fragrance and flavors industry, and is active in the personal care sector. It had sales of $3.2m last year and currently has $1.1m of debts, which will be assumed by Frutarom. Frutarom has specifically taken Abaco on board with the aim of strengthening its presence in the US - which it says is a strategic market for the company - by expanding its product line and adding support staff. This acquisition is in fact the fifth one this year for Frutarom, which has operations in Israel, the US and the UK. "Frutarom will immediately integrate Abaco's activities with that of Frutarom USA while realizing and utilizing the extensive commercial and operational synergy that exists between Frutarom's and Abaco's operations in order to take maximum advantage of the cross selling possibilities while achieving maximum cost savings,"​ said Ori Yehudai, president and CEO of Frutarom Group. Frutarom said that in making the acquisition it is especially looking to the company's development, marketing and sales team to boost its reach into the US market. Abaco claims to have hundreds of local, as well as multinational, clients for its services in the field of unique ingredients. Two days ago the purchase of Israeli firm Adumim was finalized, establishing Frutarom's supply of natural ingredients to the nutraceuticals and functional food markets in both the Israeli and international markets. The take-over will also come with Adumim's 45.8 per cent share capital in NutraLease, a company set up by Adumim founder Nissim Garti, which also serves the cosmetic market. One of the products on offer from NutraLease is a nano-encapsulation technology which allows insoluble materials to be added to foods, beverages, medications and cosmetic products without adversely affecting their quality.

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