Frutarom Industries, an international flavour and fine ingredients company headquartered in Israel, has plans to delist Slovenian flavors firm Etol, which it acquired in March.
Frutarom said that Etol will become a private company following the delisting, and confirmed that the move is in accordance with its acquisition plan.
Frutarom currently holds 98% of Etol shares and plans purchase remaining shares from the shareholders, thus making the total acquisition price to be about €35.5m.
Etol, which has a manufacturing and marketing site in Sofia Vas, Slovenia, is engaged in the development, production and marketing of sweet and savoury flavours for the food and beverage industry.
The company is also specialised in developing bases for beverages, which Frutarom intends to expand further.
Etol's products are sold to customers in Central and Eastern European countries and in emerging markets such as Poland, Croatia, Serbia, Slovakia, Hungary, Macedonia, the Czech Republic, Turkey, Russia, Belarus, Ukraine, and Kazakhstan.
It has posted a rise in sales turnover by 46%, from revenues of €31.5m in 2006 to revenues of €46m in 2010.
Etol marks Frutarom's eighth acquisition since the beginning of 2011, and is expected to increase the latter's customer base and scope of sales in emerging markets in Central and Eastern Europe.
Frutarom also believes that the deal will expand its product portfolio, while strengthening its operations and market share in these important markets.
Frutarom president and chief executive officer Ori Yehudai, explaining on the new move said, "The acquisition of Etol is an important milestone in the realization of our goal and a significant strategic step, substantially expanding our operations in Central- and Eastern Europe and strengthening and further positioning Frutarom as a leading global player. Etol's proven abilities and many years of experience in the flavors market are a strategic asset for Frutarom".
In February this year, Frutarom purchased Brazilian flavour company Mylner Indústria E Comércio in a deal worth BRL27.1m ($15.7m).