Celje, 17 January (STA) - Frutarom Industries has signed an agreement to acquire 56% of Etol, the Celje-based maker of flavourings and essential oils, for EUR 19.6m and plans to make an offer to buy the remaining shares in the coming weeks, the Israeli company said in a press release on the website of the London Stock Exchange.
The agreement on the acquisition was signed on Monday. The transaction was performed through a Frutarom subsidiary in Switzerland. The acquisition of 31.6% Etol's share capital was completed shortly following the signature and acquisition of the remaining 24.4% will be completed in the coming days.
Frutarom pointed to considerable synergy between the activities of the two companies, expecting Etol to "significantly increase Frutarom's customer base and scope of sales in emerging markets, expanding its product portfolio and deepening Frutarom's operations and market segment in these markets".
Due to the acquisition, the Ljubljana Stock Exchange suspended trading in the Etol share on Tuesday at the issuer's request. The reason given was that the issuer's business operations "have encountered a business event not known to the wide public".
Etol is a leading European food flavour maker with an annual turnover of over EUR 40m and more than 200 employees. Etol develops more than 1,000 new products every year and is present in more than 47 countries worldwide, according to information on the company's web page.
The Etol group, which comprises eight companies, generated nearly EUR 1.4m in net profit in the first nine months of 2011 on net revenues of EUR 38.6m. The namesake parent company reported EUR 37.2m worth of sales revenues and a net profit of EUR 1.1m.
Founded in 1924, Etol develops, manufactures and markets taste solutions, focusing on natural flavour products for the food and beverage industry. It also develops and markets flavours and products based on local fruits, and plant bases for beverages.