Frutarom To Buy Canadian Savory Flavor Maker For $35 Mln.

(RTTNews) - Israel based Frutarom Industries Ltd. ("Frutarom"), on Sunday said it has agreed to acquire a 95 percent stake in Canadian savory flavor maker BSA Inc., in a cash deal aggregating C$ 42.75 million or about USD 35.6 million.

The agreement also provides for the acquisition of the remaining shares starting two years from now at a price conditional on the company's business. The transaction is expected to be completed within the next few weeks.

Frutarom is involved in flavors and specialty fine ingredients, and expects the field of savory flavors to provide it an important strategic growth engine. The company has made a number of acquisitions from 2006 through 2015 to this end.

"The activity of BSA is synergetic to a large extent with Frutarom's global savory activity and will enable Frutarom to reinforce its supply of products in the field of savory and to continue expanding and deepening its activity and market share in Canada, North America and in India," the company said in a statement.

Founded in 1989 by Marcel Baril, BSA has a production site in Montreal which employs around 140 people. The company's main activities include the development, production and marketing of unique and innovative savory flavor solutions. BSA sales in 2014 reached approximately CAD 37 million or about USD 34 million.

BSA also has operations in India with a 90 percent stake.