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Frutarom to buy full ownership of Enzymotec in $210m deal

FBR Staff Writer Published 31 October 2017

Frutarom has agreed to acquire full ownership of Israeli flavour and ingredients firm Enzymotec following a net investment of about $210m.

Frutarom owns nearly 19% of Enzymotec's shares, which it bought at an average price of $9.60 per share.

The latest deal allows the company purchase the remaining 81% at an average price of $11.9 per share, seeing Enzymotec become a full subsidiary.

It will mark the ninth acquisition of the Israeli flavor and fragrance company in 2017.

The acquisition is expected to give additional reinforcement for Frutarom to its increasing activity in natural specialty fine ingredients.

Frutarom stated that it will make management strategic plans for fueling profitable growth and boosting its activity after the merger of Enzymotec.

Frutarom Group president and CEO Ori Yehudai said: “The merger will enable full integration of the companies’ activities in the fields of R&D, sales, marketing, production, supply chain and logistics while accelerating our joint growth through many cross-selling opportunities inherent in the acquisition and the expansion of the product portfolio to both Enzymotec’s and Frutarom’s existing customer bases.”

Founded in 1998, the Israel-based Enzymotec develops, manufactures and markets nutritional ingredients and medical foods. It boasts of a unique technology for the processing of lipids, which are considered to be a major nutritional element for supporting a number of biological functions.

Enzymotec’s business comprises the nutrition segment and VAYA Pharma segment.

Its nutrition business contributed a majority of the company’s last year sales. It includes InFat, an infant formula product.

Enzymotec chairman Steve Dubin said: “We believe that our customers will also benefit from the merger through Frutarom’s global presence and our employees will have the opportunity to thrive under Frutarom’s leadership as one of the world’s top companies in its field.”

The transaction is anticipated to be closed in the first quarter of 2018 and would need approval from the Enzymotec shareholders apart from meeting other customary closing conditions.

Image: Enzymotec is the manufacturer of InFat, an infant formula product. Photo: courtesy of Enzymotec Ltd.