Branchburg, NJ – December 13, 2013 – Hagelin & Company, Inc. (“Hagelin”), which engages in the development, production and marketing of flavors and unique flavor technologies for the food industry (with an emphasis on the growing sector of beverage flavors), was acquired by Frutarom Industries Ltd. (“Frutarom”), for a cash consideration of $52.4 million. With the acquisition, Frutarom, one of the world’s ten biggest companies in the flavors and fine ingredients industry, strengthens its foothold in the US market (the world’s biggest flavors market), and accelerates its penetration into the developing and fast-growing markets of Central and South America and Africa.
Ori Yehudai, President and CEO of Frutarom said: “The acquisition of this lucrative company will intensify Frutarom’s technological capabilities, especially in the growing and profitable beverage flavors sector, and adds to its R&D capabilities, sales and marketing infrastructure and cross-selling opportunities. In this acquisition, we will enjoy a significant reinforcement of excellent managers, R&D, sales and marketing personnel.”
“Frutarom presents an ideal platform for the continued growth of our business,” said Craig Hagelin, Hagelin’s CEO. “We think our customers and employees will benefit from combination with Frutarom’s own product offerings and global reach.”
Fairmount Partners, an investment banking firm based in suburban Philadelphia, served as exclusive financial advisor to Hagelin.
Headquartered in New Jersey, Hagelin is engaged in the development, production and marketing of flavors and unique flavor technologies for the food industry, with an emphasis on the growing sector of beverage flavors.
Hagelin has salient competitive advantages and, among others, specializes in the development of advanced flavor solutions for the reduction of salt, sugar and calories and improvement of the taste experience.
Hagelin’s customer base includes leading international food and beverage manufacturers and local food and beverage manufacturers in the US, the UK, and in developing markets such as Central and South America and Africa.
Headquartered in Israel, Frutarom is a global company operating in the global flavor and fine ingredients markets. Frutarom has significant production and development centers in three continents and it markets its products in five continents to over 15,500 customers in more than 145 countries. Frutarom’s products are intended mainly for the food, beverage, flavor, fragrance, pharmaceutical, nutraceutical, health food, functional food, food additives and cosmetic industries.
Frutarom, which employs approximately 2,600 people worldwide, has 2 main activities:
- The Flavors Segment, which develops, produces and markets flavor compounds and food systems.
- The Fine Ingredients Segment, which develops, produces and markets natural flavor extracts, natural functional food ingredients, natural pharma/nutraceutical extracts, specialty essential oils, citrus products and aroma chemicals.
Frutarom’s products are produced in its plants in the US, UK, Russia, Switzerland, Germany, Israel, China, South Africa, Turkey, Guatemala and Brazil. The Company’s global marketing organization includes branches in Israel, the US, UK, Switzerland, Germany, Belgium, the Netherlands, Denmark, Norway, France, Hungary, Romania, Russia, Ukraine, Kazakhstan, Belarus, Turkey, Brazil, Mexico, Guatemala, Brazil, Costa Rica, China, Japan, Hong Kong, India ,Indonesia and South Africa. The Company also works through local agents and distributors worldwide.
For further information, please visit www.frutarom.com.
About Fairmount Partners
Fairmount Partners is one of the largest investment banking groups in the Mid-Atlantic region. The firm specializes in advising middle-market growth companies with mergers and acquisitions, capital raising and strategic advice. Fairmount’s key focus areas include: Healthcare, IT and Business Services, Software & Technology and Industrial & Consumer businesses. Fairmount has completed transactions throughout North and South America, Europe, Asia and Australia. For more information, visit: www.fairmountpartners.com
Principals of Fairmount Partners acted as advisors to Hagelin in this transaction.