Frutarom Industries has signed an agreement for the purchase of 100% of the shares of Sagema GmbH of Austria and Wiberg GmbH of Germany for $130.4 million. Wiberg sales for 2015 are expected to be $172 million. Completion of the transaction is subject to approval from the German and Austrian antitrust authorities, which Frutarom expects will be granted at the beginning of 2016.
Founded in 1947, Wiberg is a leader in the specialty and innovative savory solutions that include flavor extracts, seasoning blends, and functional ingredients for the food industry, with special emphasis on processed meats and convenience foods as well as activity focused on innovative culinary solutions for restaurants, catering firms, and chefs. Wiberg employs 670 personnel throughout the world and operates five production sites, the largest of which is in Germany. Its headquarters in Salzburg, Austria, includes a modern R&D center and advanced laboratories.
Wiberg’s activity is largely synergetic with Frutarom’s global savory activity and will enable Frutarom to reinforce its supply of savory products, with emphasis on the growing field of culinary solutions. Frutarom intends to make the most of its global sales and marketing infrastructure in leveraging and realizing the many cross-selling opportunities generated by this acquisition by expanding the customer base and the product portfolio.
Marcus Winkler, Wiberg president and CEO, will continue providing guidance to the company in a consultancy capacity.
“The Wiberg acquisition is the largest strategic acquisition we have carried out so far and the first we’ll be carrying through in 2016,” said Ori Yehudai, president and CEO of Frutarom Group. “This acquisition constitutes an important milestone for Frutarom Group’s continuing implementation of its rapid growth strategy and the realization of its vision ‘to be the preferred partner for tasty and healthy success’ while establishing our position as one of the world’s largest, foremost, and fastest growing companies in the fields of taste and health.”
