One of the biggest food flavorings and fragrance makers in the world, International Flavors & Fragrances (IFF), has acquired Israeli food flavorings maker Aromor of Kibbutz Givat Oz in the Lower Galilee. Terms of the deal were not disclosed, but analysts estimated that the company was sold for $88 million. The company is privately held, with half owned by the Kibbutz.
The flavoring and fragrance business involves extracting molecules from raw materials (anything that grows, from grass and flowers on up) and enhancing them with chemical additives to produce concentrated smells or tastes that are then added to food products, perfumes, consumer products – even cars, in the form of “new car smell” aerosol sprays.
As such, Aromor’s product list reads like a college textbook on chemistry, with names like Dihydrojasmone (a jasmin-ish odor “with fresh and fruity undertones,” Aromor says), Gamma-Methyldeclactone (coconut-like odor and flavor), and Natural Nootkatone (in various strengths, with a citrus odor). Aromor is the world’s largest producer of crystalized Nootkatone.
Most of Aromor’s products are kosher, and most are exported, to Europe, Asia, North America and Latin America. The company’s factory will remain at its present location at the kibbutz, located near Afula. All of the company’s 85 employees are expected to remain on the job.
Before the acquisition, Aromor, which was establised in 1982, was a supplier to IFF. Had the acquisition been done a year ago, IFF said, Aromor’s sales would have enriched the American company’s sales by $35 million.
Good enough reason for IFF to make the acquisition, said company Chief Executive Officer Doug Tough. “We expect Aromor, with its strong R&D capabilities, to provide us with cost-effective, quality materials to use in our formula creations and external sales,” he said, while Nicolas Mirzayantz, president of IFF’s Fragrances Group, said “we believe the use of the Aromor ingredients portfolio and their technology development process will be value enhancing by improving the overall profitability and win rate of our fragrance creations. We plan to continue to support the Aromor facility in Israel and invest in and develop their R&D and manufacturing capabilities in order to strengthen the development and production of specialty ingredients.”
For its part, said Aromor CEO and President Karen Cohen Khazon, “Aromor is delighted to join the IFF family as it will enable accelerated growth for our business. Our R&D expertise, combined with IFF, will enable increased new product development and technology advances.”