Frutarom snaps up SA flavour company JannDeRee

Yet more M&A activity in SA’s food ingredients sector… Israel’s fast-track flavour group, Frutarom Industries, has announced it has signed a deal for the acquisition of the Jo-burg-based flavour company, JannDeRee.

Frutarom says it has paid $5,2 m or R46,8m for JannDeRee, a company with a sales turnover in 2012 of approximately $5m or R45m. The transaction was completed at the time of signing.

JannDeRee, founded in 1993, develops, manufactures, and markets flavours with an emphasis on both savory and sweet solutions. JannDeRee, which has been growing rapidly over the last few years, has an R&D, production and marketing site in Isando, located adjacent to Frutarom’s local site, and a wide customer base in South Africa and in other important emerging countries in the sub-Saharan region such as Malawi, Zimbabwe and Mozambique.

JannDeRee’s activities are synergetic with Frutarom’s activities in South Africa in the field of flavours, which have grown at rates higher than the rate of market growth over the past few years. Frutarom has recently further strengthened its presence in African markets by adding additional sales personnel in key countries such as Nigeria.

Frutarom will take immediate actions to integrate activities, including integration of R&D, marketing and sales infrastructures, purchase, production and supply. JannDeRee’s management, headed by MD Chris Young, will become part of Frutarom’s management in Africa, and they will act jointly to accelerate Frutarom’s growth in the region.

Says Frutarom’s President and CEO, Ori Yehudai: “The acquisition of JannDeRee continues the implementation of Frutarom’s rapid and profitable growth strategy and the realisation of its vision ‘To be the preferred partner for tasty and healthy success.’ The acquisition will substantially strengthen Frutarom’s positioning in these fast growing regions of Africa. The acquisition contributes to the expansion of our product portfolio for countries in Africa, to the strengthening of our management, research and development, manufacturing, marketing and sales capacities in the area of savoury flavours (an area where Frutarom has not yet been active in Africa).”

Yehudai adds: “We continue to seek out strategic acquisitions and to implement our rapid growth strategy combining profitable internal growth and acquisitions. Frutarom continues to accelerate its growth in both developed and emerging markets. We will continue to invest in the fast growing regions of Asia, Central and South America, Central and Eastern Europe and Africa, following a market share in emerging markets which has grown from 27% in 2010 to 36% in 2012.”

Source: Frutarom

JannDeRee: www.jannderee.com