Frutarom buys 80% of Brazil’s SDFLC

Israeli flavor and fine-ingredients company Frutarom Industries said on Sunday it has acquired 80% of SDFLC Brasil Indústria E Comércio Ltda for 110 million real ($33 million).

The purchase was aimed at continuing to penetrate growing Latin American markets and fortifying its presence in Brazil, it said, adding that SDFLC’s activities are largely synergetic with Frutarom’s taste-solutions activity.

SDFLC, a top Brazilian producer of taste solutions in the field of ice cream and desserts, had sales of about $22m. in the 12 months ending May 2017. Sales grew an average 17% a year for the past five years, Frutarom said.

The company has about 90 employees and is in the process of building a new complex that will house a research and development lab and production platform that will allow for doubling its production without any additional workforce.

Construction of the new $6m. site will be completed in 2018.

This is Frutarom’s third acquisition in Brazil since 2012 and its fourth acquisition this year.

“We are working on seeking out and executing additional acquisitions of companies and activities... with special focus on high-growth markets and natural products in the field of taste and health, and we have a strong pipeline of potential strategic acquisitions,” CEO Ori Yehudai said. (Reuters)