Is Israeli Flavoring Co. Frutarom On Its Way To Becoming Israel’s Next ‘Unicorn’?

By David Shamah, The Times of Israel September 16, 2015 Comments

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.

SEE ALSO: What Will It Take To Breed More Billion Dollar Israeli ‘Unicorn’ Companies

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Frutarom’s acquisitions

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.

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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.

To continue reading this article on the TOI site, click here.

Photos: Phil Ahren, Frutarom

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