Dive Brief:
- Frutarom Industries Ltd. has purchased German-based Extrakt Chemie for $8.2 million, according to a news release earlier this week.
- Extrakt Chemie is a leader in specialty ingredient extracts, primarily for pharma, natural medications and foods, among others. Extrakt Chemie develops solutions of natural extracts, some of which include plant-sourced enzymes for use as raw material.
- The purchase represents Frutarom’s 30th acquisition in five years, and its fifth in 2016. Frutarom has a goal of $2 billion in sales by 2020.
Dive Insight:
The purchase strengthens the company's natural ingredient infrastructure worldwide, while at the same time diversifying and broadening its production capabilities and capacity.
Frutarom’s investments this year include Algalo (algae-based ingredients), and Wiberg GmbH of Austria (a world leader in savory flavors).
Frutarom and its competitors are busy buying companies to build up and diversify their specialty ingredients portfolios, although Frutarom seems to have an edge when it comes to investments.
In January, competitor Nactis Flavors acquired PCAS’ aromatic materials portfolio. Last year, the company purchased Robertet Savory, which had expertise in transformation flavors (Maillard flavors); and hydrolyzed vegetable proteins.