Israeli Frutarom to buy Slovenian plant extracts maker Vitiva for $10 mln

The sale contract was signed by the Slovenian unit of Frutarom and Slovenian Factor Banka after more than half a year of negotiations, Slovenian daily Finance reported. The transaction will be completed over the coming weeks.

The company was secured at Factor Banka which was sent into liquidation and had to look for a new owner of Vitiva. Vitiva operates in a capital intensive industry and needs equity for its scope, Finance added.

"The acquisition of Vitiva brings Frutarom advanced research and development capabilities and a experienced management team," Ori Yehudai, CEO of Frutarom Group said. Vitiva operations will be integrated into Frutarom's specialty fine ingredients division, the company said in a press release. Its rosemary, olive and citrus products will expand the group's portfolio.

Vitiva specializes in research, production, marketing and sales of specialty natural plant extracts and colours for the food, pharmaceutical, nutraceutical and cosmetics industries. The company generated a revenue of $ 8.7 million in 2013, which it managed to raise to $ 11 million for the first eleven months of this year, Furatron added

Frutarom, headquartered in Israel, has manufacturing companies in 22 countries. Its core activities can be divided into two main lines: flavour compounds and specialty fine Ingredients.

($=0.8189 euro)