Flavor solutions and fine ingredients provider Frutarom Industries has acquired 97.6% stake in Slovenian firm Etol d.d. for a total amount of EUR34.6m.
Frutarom acquired 63.4% of Etol in January and February through transactions made outside the Slovenian stock market for an overall amount of approximately EUR22.3m.
Etol will be delisted from the Slovenian Stock Exchange over the next few weeks by Frutarom, which will further acquire the balance shares in Etol from the remaining shareholders.
The acquisition of Etol by Frutarom is expected to support the company in the development of fruit based flavors and products and food systems, using local fruits of the region.
Frutarom president and chief executive officer Ori Yehudai said the acquisition expands the company's operations in Central- and Eastern Europe and strengthens its presence and market share in these fast growing markets.
"Etol's proven abilities and many years of experience in the flavors market, with its specialization in natural products in beverage bases, are a strategic asset for Frutarom," Ori Yehudai said.
"We have made eight successful strategic acquisitions since the beginning of 2011, and the scope of the revenues of these acquisitions, based on 2010 financial data, is US$145 million.
"Over the next few months we will continue to utilize the many efficiencies arising from the integration of these acquisitions and we are convinced they will enable us to reach the next significant step in Frutarom's profitable growth."
Etol has a manufacturing and marketing site in Skofja Vas, Slovenia and employs about 240 employees in research and development, production, sales and marketing, including the management team.