ECONOMY: Economic flow in the aroma sector.

To make up for its Swiss rivals Givaudan and Firmenich, the No. 3 World of Flavors and Fragrances, IFF (International Flavors and Fragrances), pays 7,1 billions of dollars to buy the Israeli nugget Frutarom.

MAJOR CHANGE IN THE ECONOMIC SECTOR OF FOOD AROMAS

The auction is going up in the segment of natural flavors. More and more popular with consumers, these products make it possible to avoid the use of artificial products, both in the food sector and in the cosmetics sector. What arouse envy.

Latest example to date: repurchase by International Flavors and Fragrances (IFF) from the Israeli specialist of natural food flavorings, Frutarom for 7,1 billion dollars (5,95 billion euros). By disbursing this record sum, IFF makes the largest acquisition in food flavorings.

To catch up with its Swiss competitors Givaudan et Firmenich, which prances at the head of the aromas and fragrances market, the American group - number 3 in the sector with $ 3,4 billion in sales in 2017 had to strike a blow. Thanks to Frutarom, IFF hopes to create a leader in “ natural taste, smell and nutrition ". Established in more than 35 countries where it has 70 laboratories, the multinational intends to achieve 145 million dollars in cost synergies within three years, thanks to the operation.

Established in 1933 and listed in London and Tel Aviv, Frutarom was one of the natural targets. Based in Haifa and valued at nearly $ 6 billion on the stock market, the firm has risen to sixth in the world, becoming a major supplier to the pharmaceutical, cosmetic and food industries.

With 5.400 people, Frutarom ($ 1,4 billion in revenue in 2017) has itself bought no less than 39 companies over the past five years. A year ago, the company had spent 20 million euros to afford the producer of food flavors from Grasse, René Laurent.
IFF is committed to maintaining Frutarom's production capacities, as well as its R & D, for three years in the Hebrew state, believing that this company “ has an extremely attractive product portfolio, including extensive expertise in the field of natural products ". Quite recently, Frutarom announced its intention to operate for three years a new laboratory, launched by the Israeli public authorities in the field of " food tech ". A sector wider than the flavors and in which Israel also has global ambitions.Source : Lesechos.fr