Frutarom to buy remaining 81% of Enzymotec

Israeli flavor and fine-ingredients company Frutarom Industries said on Sunday it has agreed to acquire the 81% of special-nutrition firm Enzymotec it does not already own for $11.9 a share, or about $168 million.

Frutarom had acquired in prior transactions 19% of Enzymotec for $42m., reflecting an average share price of $9.6, and announced its intention to make a tender offer for Enzymotec shares.

Following negotiations with Enzymotec’s board of directors, the sides agreed upon a full merger. Enzymotec will become a wholly owned subsidiary of Frutarom and be delisted from trading.

Frutarom expects the deal, which will be financed through bank debt and/or debt from a financial institution, to close by early in the first quarter of 2018.

Enzymotec develops nutritional ingredients and medical foods, and its technologies enable extraction of lipids from natural sources. It has 235 employees, mainly in Israel and the United States. Its sales in the year to June 2017 were $47m.

Enzymotec’s nutrition segment will contribute to the expansion of Frutarom’s portfolio of products in the areas of pharmaceuticals, dietary supplements, foods for infants and elderly clinical nutrition, Frutarom chief executive Ori Yehudai said.

(Reuters)