Frutarom is to purchase 51% of the shares of the Brazilian company Bremil Indústria, said to be the top producer of savoury solutions in Brazil, at a company value of approximately $73 million. Consideration for the 51% of shares is $31 million.

The transaction includes a mechanism for future consideration based on Bremil’s future business performance in 2017 and 2018. The purchase agreement includes an option for the purchase of the balance of shares of Bremil to take effect starting five years from the date of the transaction’s completion at a price based on Bremil’s business performance during that period. The transaction is expected to be completed during the first few months of 2018.

According to Bremil’s management reports its revenues over the 12 month period ending October 2017 stood at approximately $47 million.

Bremil was established in 1987 in the city of Passo Fundo in the Brazilian state of Rio Grande do Sul and holds a leading position in Brazil’s savoury solutions market, with emphasis on convenience foods, prepared foods and processed meats. Bremil, which employs about 250 workers, serves about 450 customers in Brazil and countries of the region, with substantial presence among top meat producers, and has two production sites, in southern and central Brazil, with significant excess production capacity which Frutarom intends to utilise towards raising output and growth in Brazil and neighbouring countries.

Frutarom said it sees great strategic importance for rapid growth in the field of savoury flavours and is focused on developing unique innovative natural and healthy products with high added value at its sites throughout the world.

The acquisition of Bremil is Frutarom’s fourth acquisition in the last five years in the Brazilian market as well as seventh over that period in Latin America. It is Frutaron’s twelfth acquisition of 2017.

Ori Yehudai, President and CEO of Frutarom Group, said: "The acquisition of Bremil is the continuation of the implementation of Frutarom Groups rapid profitable growth strategy and the realization of its vision to be the preferred partner for tasty and healthy success. This is an important strategic acquisition which enables Frutarom to make an additional major leap forward in strengthening its global leadership in savory solutions as well as substantially reinforcing our position in the growing Brazilian market in particular and in Latin America in general.”

“We intend to continue working on expanding our activity in Latin America and other growing emerging markets wher our growth engines are focused," continued Yehudai. "The Bremil acquisition is the twelfth acquisition for Frutarom this year and Frutarom’s seventh in Latin America in the past five years, a period in which we have built a broad sales and marketing infrastructure in most Central and South American countries, supported by our local and global R&D and production activity.”