Frutarom Buys Germany’s Extrakt Chemie

May 3, 2016 | Israeli flavors and food ingredients company Frutarom Industries Ltd. has acquired 100% of German partnership Extrakt Chemie Dr. Bruno Stellmach GmbH &Co. KG, together with the property on which Extrakt Chemie’s plant is situated, for approximately $6 million in cash plus the assumption of debt (net) amounting to approximately $2.2 million. For the fiscal year ended February 2016, Extrakt Chemie’s revenue was some $10 million. The purchase agreement includes a mechanism for future consideration conditional on the business performance of Extrakt Chemie during 2016 and 2017. The transaction was independently financed. Extrakt Chemie was established in 1969. It develops, produces and markets specialty solutions of natural extracts, some that include plant-sourced enzymes for use mainly as raw material (API) in the pharmaceutical market, with proven benefits in, among other things, the treatment of liver diseases, digestive problems and the prevention of infections. Besides Germany, it is also active in Denmark, Switzerland, France and Austria and in Australia. It has about 35 employees. Frutarom was founded in 1933 by Yehuda Araten and Maurice Gerzon.