Is Israeli Flavoring Co. Frutarom On Its Way To Becoming Israel’s Next ‘Unicorn’?
This article was first published on The Times of Israel and was re-posted with permission.
Flavoring and ingredient firm Frutarom took a giant step toward becoming Israel’s next “unicorn” – a world giant with a billion dollars in sales – with its tenth acquisition so far this year. Frutarom ties the record for number of companies acquired by a single corporation in one year this century (Massachusetts-based Alere Global bought ten companies in 2007). Last weekend, Frutarom announced it was acquiring 79% of the shares of the Spanish company Nutrafur, a company that develops and markets specialty natural plant extracts bearing antioxidant properties.
The Spanish company was valued at $14.5 million, with Herzliya-based Frutarom’s share worth about $11.4 million. The specific terms of the deal were not announced.
With this year’s acquisitions, including one in Australia, Frutarom has a presence on every continent (except for Antarctica, so far), and is now the seventh-largest flavoring and ingredient company in the world.
Established in 1933, Frutarom offers a total of some 31,000 products, which are sold to more than 15,500 customers in 145 countries around the world – including Algeria, Kuwait, the United Arab Emirates, via its Flachsmann A/S subsidiary. Now part of an international holding group, ICC Industries, the company is still headquartered in Haifa, and made a profit $63.6 million on revenues of $684 million in 2013.
All that acquisition activity has helped sell a record of $413 million of products in the second quarter, the company said. Thus, if, as many tech experts claim, one of the qualities of a “unicorn” – a uniquely successful company that is a world leader in its field – is achieving a major milestone in sales or other financial metrics, Frutarom is on its way to unicorn status.
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Photos: Phil Ahren, Frutarom