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Frutarom Industries Ltd. is targeting $2 billion in sales by 2020, after what the maker of flavors for Coca-Cola Co. and Nestle SA said is its biggest acquisition to date.
Shares of the Haifa, Israel-based company soared 11 percent, the most since January 2009, to 191 shekels. Frutarom signed an agreement to buy Austrian flavor company Wiberg GmbH for about $130 million which will be financed by bank debt and is expected to lead to more than $12 million in savings on an annual basis, the company said in an e-mailed statement.
The aggressive acquisition strategy of Chief Executive Officer Ori Yehudai, who has nearly doubled revenue since 2010, has made the company the top performer on Israel’s benchmark index this year. The company has made 12 acquisitions since January, including India’s Sonarome Pvt. Ltd. and Poland’s Amco Sp ZOO, extending its product base and geographical reach.
“The acquisition of Wiberg transforms Frutarom into a global market leader for savory solutions,” Yehudai said in an e-mailed statement. “Wiberg will also facilitate the acceleration of our penetration into the savory market in North America through its Canadian-based activity, which also has research and development labs, a factory and a sales platform on the West Coast of the United States, and augmenting the activity of BSA of Canada which we acquired earlier this year.”