Flavour and ingredients company Frutarom Industries paid $17.2m in cash on Thursday for a 60% stake in India-based flavour and fragrance developer Sonarome.
Founded in 1981, Sonarome develops and produces a range of flavours and fragrances for food and beverage manufacturers, and recorded about $12m in revenue in 2014. Headquartered in Bangalore, it also serves around 20 markets in Africa.
The funding, provided at a $28.2m valuation, includes an option for Israel-based Frutarom to acquire the rest of Sonarome’s shares after a two year-period at a price conditional on its ongoing business performance.
Ori Yehudai, chief executive of Frutarom Group, said: “Combined with Sonarome’s activity, Frutarom will continue to develop and deepen its presence in the important markets of India and Africa, capitalise on Sonarome’s R&D and sales and marketing platform and integrate it with Frutarom’s global R&D and sales and marketing infrastructure in order to leverage and realize the many cross-selling opportunities arising from this acquisition.
“We will also work towards leveraging Sonarome’s production and supply chain capabilities to accelerate our growth in India.”
– Photo courtesy of Sonarome Private Ltd.