Food ingredients firm secures £14.75M loan to support acquisition

By James Ridler contact

- Last updated on GMT

Flavours & Essences has been acquired by Israel-headquartered food ingredients firm Frutarom
Flavours & Essences has been acquired by Israel-headquartered food ingredients firm Frutarom

Related tags: Flavor

Israel-headquartered food ingredients firm Frutarom has secured a loan of £14.75M to support its acquisition of UK-based manufacturer Flavours & Essences (F&E).

Bank Leumi (UK), the London-based subsidiary of Israel’s international bank, financed the purchase. Frutarom said the deal, which had been completed in August last year, supported its global growth strategy.

Frutarom ceo and president Ori Yehudai commented: “The strategic acquisition forms a crucial continuation of our successful, rapid and organic growth strategy.

“Just as we’ve grown substantially in recent years, so have our requirements for loan facilities – and yet again Bank Leumi has delivered.”

The deal saw Frutarom acquire F&E’s production site and research and development centre in Blackburn, as well as the business’ 41 members of staff.

Shalhevet Mandler, head of commercial finance at Bank Leumi (UK) added: “We are a relationship bank by nature and we’re always keen to support clients as they develop. We’re pleased to support the company once more as it continues its expansion.”

More than 70,000 products sold

Listed on the London and Tel Aviv Stock Exchanges, Frutarom maintains production and development centres on all six continents and sells more than 70,000 products to 30,000 customers in over 150 countries.

The company manufactures flavour and ingredient products for the food and drinks industry, including the health food, functional food and food additives sectors. Its products are also used by the pharmaceutical and cosmetics industries.

Food and drink acquisitions

The purchase of F&E by Frutarom follows a number of acquisitions made by food and drink manufacturers since the start of this year.

Burts Potato Chips purchased Leicester-based popcorn and healthy snacks firm Savoury & Sweet at the beginning of the month for an undisclosed sum — its first acquisition since the company was founded in 1997.

Last week saw Nestlé sell its US confectionery arm – including well-known brands Crunch, Nerds and Butterfinger – to Ferrero, in a deal worth $2.8bn (£2.03bn).

Meanwhile, Birds Eye owner Nomad Foods acquired Goodfella’s Pizza from 2 Sisters Food Group​ owner Boparan Holdings, in a deal worth €225M (£199M).

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1 comment

Timing

Posted by George seward,

James, the deal was announced in August and completed then. I was the M and A adviser for the vendor. It's old news

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