Frutarom Acquires RAD Natural Technologies, a Company Specializing in Unique Natural Plants Extracts With Anti-Oxidant Properties

Nov 19, 2007, 00:00 ET from Frutarom Industries Ltd

    HAIFA, Israel, November 19 /PRNewswire-FirstCall/ -- Frutarom
 Industries Ltd. (LSE: FRUTq, TASE: FRUT, OTC: FRUTF) ("Frutarom") announced
 today that on Thursday, November 15, 2007, it acquired through its
 subsidiary Frutarom Ltd. the activity of RAD Natural Technologies Ltd.
 ("RAD"). Led by Dr. Rina Reznick, a world expert in natural anti- oxidants,
 RAD researches, develops, produces and sells unique natural plant extracts
 with anti-oxidant properties for use in food, dietary supplements and
 cosmetic products. RAD possesses unique knowhow, which is protected by
 patents, in this field. RAD's sales fo 2006 totaled US$ 1.2 million and US$
 0.9 million for the first six months of 2007.
     In accordance with the acquisition agreement, Frutarom acquired RAD's
 assets, including fixed assets, inventory, agreements, orders, goodwill,
 intellectual property and expenses (Frutarom will not assume RAD's
 liabilities), in consideration for a cash payment of US$ 4.1 million, which
 was financed with bank loans. The acquisition agreement also determines an
 earn out mechanism for a future payment, such that RAD will be entitled to
 an additional payment if the accumulated sales for RAD's products in 2008
 and 2009 are more than US$ 4 million. If the accumulated sales for RAD's
 products in 2008 and 2009 exceed US$ 11.1 million, the maximum additional
 payment to which RAD will be entitled will be US$ 4.9 million.
     The acquisition of RAD, Frutarom's seventh this year, continues the
 realization of the Company's rapid growth strategy, combining quick organic
 growth with strategic acquisitions and of realizing its vision, "To be the
 preferred partner for tasty and healthy success." Combined with Frutarom's
 other acquisitions, this establishes Frutarom's position as one of the ten
 leading, large companies in the world in the field of flavor.
     RAD's activity is synergetic with and complements Frutarom's activity
 and expands the range of natural health and taste solutions that Frutarom
 offers its customers worldwide. RAD has an impressive pipeline of projects
 together with its varied customers throughout the world, including large,
 multinational leaders in their fields. The acquisition of RAD combined with
 the acquisition of the Gewurzmuller group in October of this year, of
 Raychan in August 2007 and the Nesse group at the beginning of 2006, join
 Frutarom's existing activity in Israel in the field and boost Frutarom as a
 leading global supplier to food manufacturers of unique, natural solutions
 characterized by taste and health, all in accordance with Frutarom's
 strategy. RAD's products, which are protected by patents, will be
 integrated with the product offering produced and marketed by Frutarom's
 Flavors Division. Frutarom will act to extract the greatest advantage
 included in the acquisition and to sell RAD's products to Frutarom's
 customers in the 120 countries in which it operates and thereby maximize
 the existing synergy.
     Background on the Company
     Frutarom is a global company with significant production and
 development centers on three continents that markets its products on five
 continents to over 5,000 customers in more than 120 countries. Frutarom's
 products are intended mainly for the food, beverage, flavor, fragrance,
 pharmaceutical, nutraceutical, health food, functional food, food additive,
 and cosmetic industries.
     Frutarom operates through two Divisions:
     - The Flavors Division, which develops, produces and markets flavor
 compounds and food systems.
     - The Fine Ingredients Division, which develops, produces and markets
 natural flavor extracts, natural functional food ingredients, natural
 pharmaceutical/nutraceutical extracts, specialty essential oils and citrus
 products, and aroma chemicals.
     Frutarom's products are produced at its plants in the United States,
 England, Switzerland, Germany, Israel, Denmark, China, and Turkey. The
 Company's global marketing organization includes branches in Israel, the
 United States, England, Switzerland, Germany, Belgium, Holland, Denmark,
 France, Hungary, Romania, Russia, Ukraine, Kazakhstan, Belarus, Turkey,
 Brazil, Mexico, China, Japan, Hong Kong, India and Indonesia. The Company
 also works through local agents and distributors worldwide. Frutarom has
 1,500 employees worldwide.
     For further information, visit our website: http://www.frutarom.com.
 
     Company Contact:
 
     Ori Yehudai, President & CEO
     Frutarom Ltd.
     Tel: +972-4-846-2401
     E-mail: oyehudai@frutarom.com
 
 

SOURCE Frutarom Industries Ltd