Below is the immediate report submitted today to the Israeli Securities Authority ("ISA") and the Tel-Aviv Stock Exchange through the ISA's electronic submission system in accordance with the Securities Regulations (Periodic and Immediate Reports), 1970.
Frutarom Industries Ltd.
Registration No.: 52-004280-5
The securities of Frutarom Industries Ltd. are listed for trading on the Tel-Aviv Stock Exchange
25 HaShaish St., P.O.B. 10067, Haifa 2611001
Tel: +972-4-846 2401, Fax: +972-4-872 2517, www.frutarom.com
October 13, 2016
Israeli Securities Authority
Tel Aviv Stock Exchange Ltd.
Subject: Acquisition of a Brazilian Company Specializing in Flavors and Natural Extracts for Beverages
Frutarom Industries Ltd. ("Frutarom") hereby announces that on October 11, 2016 it signed, through a subsidiary, on an agreement for the purchase of 100% of the shares in the Brazilian company Nardi Aromas Ltda. ("Nardi") in exchange for approximately USD 1.6 million (approximately BRL 5.1 million). The transaction was completed at signing and was independently financed.
Nardi was founded in 1971 and has an efficient production site in the vicinity of the city Sao Paulo nearby Frutarom's Brazilian production site. Nardi has 14 employees and it specializes in the development, production and marketing of traditional Brazilian flavors and natural plant-based extracts for the alcoholic drinks and carbonated beverages markets. Nardi has dozens of longtime customers including leading Brazilian beverage companies.
Nardi sales for the 12 month period ending August 2016 amounted to approximately USD 1.5 million (approximately BRL 4.9 million). The company's key personnel will continue serving in their roles.
Frutarom does not view this transaction as the purchase of a material asset.
This report includes forward-looking statements as defined in the Israel's Securities Law, 1968. Such information includes, inter alia, data, forecasts, objectives, assessments, estimates, and/or other information regarding events or future matters, the transpiring of which is not certain and are partly not solely under Frutarom's control. This forward-looking information is based on assessments by Frutarom management which are in turn based, inter alia, on information known to Frutarom at this point in time, including assessments concerning Frutarom's fields of activities, goals, objectives, strategy, events, and future intentions. Forward-looking statements are, by their nature, subject to risks and uncertainties. The materialization or non-materialization of forward-looking statements will be influenced, inter alia, by risk factors characterizing Frutarom's activity as well as by developments in its general business environment and external factors affecting the Frutarom Group (including Nardi) and its fields of activity.
Tali Mirsky, Adv.
Global VP Legal Affairs & Corporate Secretary
Frutarom Industries Ltd.
This information is provided by RNS