The transaction will be done via full merger of Enzymotec into a subsidiary of Frutarom
Frutarom will acquire full ownership of Enzymotec, an Israeli speciality chemicals company at a net investment of approximately $210m. At of the date of signing Frutarom held approximately 19% of Enzymotec’s shares at an average price of $9.6 per share. Frutraom, a flavour and fragrance company will acquire the balance of shares at $11.9 per share.
Bri Yehudai, President and CEO of Frutarom Group, said: "This acquisition will provide additional reinforcement to our growing activity in natural specialty fine ingredients based on innovation which is expanding at a rapid pace.”
“The merger will enable full integration of the companies’ activities in the fields of R&D, sales, marketing, production, supply chain and logistics while accelerating our joint growth through many cross-selling opportunities inherent in the acquisition and the expansion of the product portfolio to both Enzymotec’s and Frutarom’s existing customer bases.”
“We particularly see Enzymotec’s nutrition segment as playing an important part in our future profitable growth strategy that will contribute to the expansion of the portfolio of comprehensive solutions for customers of both companies in the fields of pharmaceuticals, dietary supplements, designated foods for infants in the field of infant formula (where Frutarom has almost no activity currently) and elderly clinical nutrition in which Frutarom is active.”
“We are pleased that we have reached an amicable agreement with Frutarom in a manner that benefits our shareholders”, said Steve Dubin, Chairman of Enzymotec. “We believe that our customers will also benefit from the merger through Frutarom’s global presence and our employees will have the opportunity to thrive under Frutarom’s leadership as one of the world’s top companies in its field.”