June 25, 2017 / 9:39 AM / a year ago

UPDATE 1-Israel's Frutarom buys 80 pct of Brazil's SDFLC

(Adds details, share reaction)

JERUSALEM, June 25 (Reuters) -

* Israeli flavour and fine ingredients company Frutarom Industries said on Sunday it acquired 80 percent of SDFLC Brasil Indústria E Comércio Ltda for 110 million real ($33 million).

* Frutarom said the purchase was aimed at continuing to penetrate growing Latin American markets and fortifying its presence in Brazil.

* It noted that SDFLC’s activities are largely synergetic with Frutarom’s taste solutions activity

* SDFLC, a top Brazilian producer of taste solutions in the field of ice cream and desserts, had sales of about $22 million in the 12 months ending May 2017. Sales grew an average 17 percent a year for the past five years, Frutarom said.

* The company has about 90 employees and is in the process of building a new complex that will house a research and development lab and production platform that will allow for doubling its production without any additional workforce.

* Construction of the new $6 million site will be completed in 2018.

* This is Frutarom’s third acquisition in Brazil since 2012 and its fourth acquisition this year.

* “We are working on seeking out and executing additional acquisitions of companies and activities ... with special focus on high-growth markets and natural products in the field of taste and health, and we have a strong pipeline of potential strategic acquisitions,” CEO Ori Yehudai said.

* Frutarom’s Tel Aviv-listed shares were up 1 percent at midday.

* ($1 = 3.3422 reais) (Reporting by Steven Scheer; Editing by Tova Cohen)

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