11 November 2015
AMCO, founded in 1998,
has an R&D and sales and marketing center
along with an efficient and modern state-of-the-art production
site in Warsaw, Poland with large production capacity and
significant room to expand.
AMCO employs a staff of 70, including 12 engaged
in R&D with advanced academic degrees.
AMCO's main activity is the development, production
and marketing of unique and innovative savory flavor solutions
(the non-sweet spectrum of flavors) that include
seasoning blends, marinades, and functional ingredients
for the food industry.
AMCO sales in the 12-month period ending September 2015
reached approximately USD 19.5 million (approx. 71 million PLN).
DETAILS
Frutarom Industries Ltd. ("Frutarom")
continues the momentum of acquisitions and
implementing its rapid and profitable growth strategy:
the Company announces today the signing of an agreement
to purchase 75% of the share capital
AMCO Sp. z o.o. ("AMCO") of Poland
for USD 20.7 million (82.25 million PLN).
The purchase agreement includes an option
for acquiring the remaining balance of shares starting two and a half years
from the closing date of the transaction at a price
based on the company's business performance.
The transaction will be financed using bank debt and
will be completed within the next few weeks.
The company's founders who have been running
AMCO successfully will continue in their managerial roles
with the company and as shareholders.
The worldwide market for savory flavors
is growing due to the rise in standard of living and
changes in lifestyle and consumer habits, leading to
rising demand for processed and convenience foods
both for home consumption and when eating out.
Frutarom views the field of savory flavors
an important strategic growth engine
and in
* 2006 began substantially expanding in this field
through the acquisition of the savory activities of
the Nesse group, Gewurzmueller and Christian Hansen
in 2006, 2007 and 2009 respectively,
* the acquisition of EAFI and the savory activities of Rieber
and of FSI in 2011,
* the acquisition of Savoury Flavours in 2012,
* the acquisition of 75% of the Russian company PTI in 2013,
* and the acquisitions of FoodBlenders in the UK and of BSA in Canada
in 2015.
Frutarom sees great importance for this field,
in which now holds a leading position in Europe and
invests heavily in developing unique innovative natural
and healthy products with high added value
at its sites throughout the world.
The activity of AMCO is synergetic to a large extent
with Frutarom's global savory activity and
will enable Frutarom to reinforce its supply of products
in the field of savory and to continue expanding and deepening
its activity and market share in Poland and neighboring countries.
Poland, with its population of 38 million,
is a growing central country in Europe and
considered one of the largest consumer markets there,
with a stable economy and strong industrial sector.
The country has a large and efficient food industry
which manufactures finished food products also
for Western, Central and Eastern European markets.
Growth rates in Poland in recent years have reached approx. 4%
and, according to forecasts by analysts, the Polish market
is expected to grow by 4-5% annually in upcoming years,
a much higher rate of growth than expected for Western Europe.
AMCO brings impressive R&D capabilities, quality personnel
and a modern state-of-the-art plant with significant possibilities
for expansion.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
