Israeli flavors and functional ingredients supplier Frutarom has expanded its presence in Central America with the acquisition of Guatemalan flavor company Aroma SA in a $12.5m deal.
Aroma, which has a production facility in Guatemala City, supplies leading global food and beverage manufacturers as well as local firms in Guatemala, Honduras, Costa Rica and El Salvador, and has been growing rapidly in recent years, with sales increasing 75% between 2009 and 2012.
The deal is the latest in a string of acquisitions from Frutarom, which is one of the top 10 flavor companies in the world.
Following the deal, Frutarom's operation in Costa Rica will be merged with Aroma to create a development and production center for the region, said CEO and president Ori Yehudai.
“Frutarom intends to integrate Aroma's production, R&D, sales and marketing infrastructure with Frutarom's global R&D, sales and marketing infrastructures in order to leverage and exploit the cross-selling opportunities generated by this acquisition.
“We consider the acquisition of Aroma as another strategic step to increase Frutarom's market share in high growth markets in general and particularly in Central America.”