Frutarom

Last updated
Frutarom Industries Ltd.
Type Public
LSE:  FRUT, TASE:  FRUT
Industry Chemicals, Food
Founded1933;88 years ago (1933)
FounderYehuda Araten, Maurice Gerzon
Headquarters,
Key people
Ori Yehudai, President and CEO
Dr. John J. Farber, Chairman [1]
Products Flavors and fragrances
RevenueUS$ 872.8 million (2015) [2]
US$ 130.25 million (2015) [2]
US$ 96.08 million (2015) [2]
Total assets US$ 1,318.48 million (2015) [2]
Total equity US$ 551.68 million (2015) [2]
Number of employees
2,700
Parent ICC Industries Inc.
Website www.frutarom.com

Frutarom Industries Ltd. (Hebrew : פרוטרום תעשיות בע"מ) is an Israeli-based company that specializes in the production and distribution of extracts for flavor and fragrance. In 2015 it had sales of over $872 million. [3]
The company’s shares are traded on the London Stock Exchange and the Tel Aviv Stock Exchange, where it is a constitute of the TA-25 Index of leading shares.

Contents

Overview

The Frutarom Group is a flavor and ingredients company based in Haifa, Israel. The company develop, manufacture and market an extensive variety of flavors and ingredients catered to customers in a range of industries: food, beverage, flavor, fragrance, pharmaceutical, nutraceutical, food additive, and cosmetic.

Frutarom's some 20,000 products are sold to more than 10,000 customers, in 120 countries around the world. The Frutarom Group has 1,900 employees worldwide, with manufacturing facilities located in Europe, North America, Israel and Asia.

Frutarom operates through two major divisions:

History

Frutarom was established by Yehuda Araten and Maurice Gerzon, two industrialists from the Netherlands in 1933. They chose to build their first plant in an almost desert-like area between Haifa and Acco in Israel, making Frutarom one of Israel’s earliest industrial enterprises. In 1952, Frutarom became a subsidiary of the newly established Electrochemical Industries (Frutarom) Ltd (EIF). By 1973 ICC Industries, owned by Dr. John J. Farber, became the controlling party of EIF and Frutarom. Since the 1990s, Frutarom has expanded by establishing itself overseas beginning with the acquisition of a small US company in 1990. Frutarom now has subsidiaries in Israel, the United States, the UK, Switzerland, Russia, Turkey, China, Ukraine, Kazakhstan, Peru and Germany, plus marketing offices in France, Romania, India, and Hong Kong.

In 1996 Frutarom listed on the Tel Aviv Stock Exchange. The company was formerly known as Frutarom NewCo (1995) Ltd but changed its name to Frutarom Industries Ltd. in 1996. [4]

On 22 February 2005, Frutarom raised approximately US$71 million by listing 10,000,000 Global depository receipts on the London Stock Exchange's main market. [5]

On February 5, 2009, New York City Mayor Michael Bloomberg identified a Hudson County Frutarom facility that processes fenugreek seeds as the source of a mysterious maple syrup smell that has periodically filled the city since October 2005. The most recent "maple syrup event" occurred January 29, 2009. While numerous calls were placed to the city's 311 non-emergency complaint hotline on days when the odor was noticed by New Yorkers, the Mayor and the New York City Department of Environmental Protection have determined that the smell is not harmful.

It was announced in November 2013 that Frutarom would acquire 75% of Russia’s Protein Technologies Ingredients for $50.3 million, with an option to acquire the remaining quarter stake, held by the Cyprus-based firm, Vantodio Holdings, within three years. [6] In May 2015, the company announced it had signed a deal to acquire 95 percent of Investissements BSA, a flavourings producer based in Montreal, for a fee of $35.6 million, as part of its expansion plans into the North American region, as well as India. [7] In August 2016, Frutarom acquired the Irish company Redbrook for 40 million euros. [8]

On May 8, 2018, International Flavors & Fragrances acquired Frutarom for $7.1 Billion. [9]

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References

  1. Executive Profile - John J. Farber, BusinessWeek
  2. 1 2 3 4 5 Financial Times - Markets Data
  3. Company's 2008 Investor Relations Presentation , retrieved 2009-10-07
  4. http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=FRUT:IT
  5. Frutarom welcomed to Main Market - London Stock Exchange Archived 2012-09-04 at Archive.today , February 2005
  6. Tova Cohen (18 November 2013). "Israel's Frutarom agrees to buy 75 percent of Russia's PTI". Reuters.
  7. Steven Scheer (17 May 2015). "Israel's Frutarom to buy 95 percent of Canada's BSA". Reuters. Retrieved 18 May 2015.
  8. http://www.globes.co.il/en/article-frutarom-buys-irish-savory-solutions-co-redbrook-for-45m-1001143728
  9. "Investors". ir.iff.com. Retrieved 2018-05-10.[ permanent dead link ]