Frutarom has signed an agreement for the purchase of 99.96% of the shares in the Polish company Pollena-Aroma for approximately $8.5 million (approx. €7.2 million). The transaction was completed upon signing and financed from independent sources.

This is the eleventh acquisition Frutarom has made this year, following 29 acquisitions it has carried out since 2015.

According to Pollena-Aroma’s managerial reports, its sales turnover in the 12 month period ending September 2017 totalled approx. $ 5million (approx. €4.5 million).

Pollena-Aroma, established in 1956, engages in the development, production and marketing of flavours, fragrances and specialty ingredients for the aromatherapy and natural cosmetics industries. The company has 64 employees.

The acquisition is said to be the continuation of the implementation of Frutarom’s strategy to develop global activity in fragrances, with emphasis on high-growth emerging markets. In this framework, in 2017 Frutarom acquired Turpaz in Israel which joined Frutarom’s minor existing fragrance businesses concentrated mainly in India, Africa and Latin America.

"This is another strategic acquisition of activity in Frutarom’s core field which will enable us to offer our customers a broader portfolio of solutions, and an important step in implementing Frutarom’s strategic plan to develop worldwide business in fragrances,” said Ori Yehudai, President and CEO of Frutarom. “The field of fragrances is synergetic and complementary to the field of flavours with respect to raw materials and production processes, among other things, and many players in Frutarom’s fields of activity carry out parallel flavors and fragrances activities. We see interesting and diverse growth opportunities for fragrances, especially in emerging markets, and the potential to perform acquisitions of companies with combined flavour and fragrance activities, including in countries wher Frutarom is already active, with the potential to realize interesting operational synergies. In the past we would forgo opportunities to acquire companies whose main activity was fragrances and with just a smaller amount in flavours. In the framework of our strategic decision to develop a global fragrances business, we can now move ahead with such acquisitions as well, like Pollena-Aroma, and we have an interesting pipeline of further acquisitions in the field of fragrances which we are pushing forward. The acquisition also provides further reinforcement for our growing activity in Poland and neighbouring countries wher Frutarom holds a leading position in flavours.”