January 19, 2016

Israel-based Frutarom, one of the world’s ten biggest flavor and specialty ingredient companies, is continuing to add to its portfolio with the acquisition of New Jersey-based biotech company, Grow Co., for $20 million, according to Reuters.

Founded in 1977, Grow Co. produces natural ingredients used in the production of functional foods, dietary supplements, natural remedies, flavors, and cosmetics. With its R&D and marketing center and its production facility, in addition to its technological systems and its range of products, Grow Co. is expected to strengthen Frutarom’s portfolio of specialty solutions for the food and personal health industries.

“The acquisition of Grow blends in well with our rapid and profitable growth strategy, deepening and expanding Frutarom’s activity in the growing field of natural specialty dietary supplements and the use of unique technologies in their manufacture,” said Frutarom president and chief executive, Ori Yehudai. “We will continue investing in significantly expanding our global activity in this important and growing field, both through strategic acquisitions and by collaborating with universities, research institutes and startup companies for developing innovative natural ingredients.”

Frutarom has been expanding at an accelerated rate, with this deal marking the company’s 29^th acquisition within the past five years, but the company is showing no signs of slowing down.

"The acquisition of Grow is our 29th acquisition in the past five years and carries on the implementation of our rapid and profitable growth strategy combining internal growth, above the rates of growth in the markets where we operate, with strategic acquisitions," Yehudai told Globes, adding, "We have an excellent pipeline of future acquisitions which will contribute, along with continued reinforcement of our market leadership in joining together the worlds of natural flavors and health, towards achieving the goals we recently set out: $2 billion in sales by 2020 along with an EBITDA margin of over 22% in our core activities."