Israel’s flavors and fine ingredients company Frutarom has acquired Extrakt Chemie Dr. Bruno Stellmach, a German firm focused on extracting natural specialty ingredients for the pharmaceutical, food and cosmetics industries. The purchase price was approximately $6 million, plus assumed net debt of around $2.2 million. Extrakt Chemie’s revenues for the fiscal year ended February 2016 were about $10 million.

The agreement includes a mechanism for future consideration that is conditional on Extrakt Chemie’s performance in 2016 and 2017. Extrakt Chemie’s production site in Stadthagen, near Hanover in northwest Germany, is GMP-certified and includes an R&D laboratory. The company, which employs around 35 people, holds a leading position in the German market and is also active in other European countries such as Denmark, Switzerland, France and Austria, as well as in Australia.

Frutarom’s president and CEO, Ori Yehudai, commented: “The acquisition of Extrakt Chemie is a natural continuation in the strengthening of our global infrastructure for natural ingredient extracts while diversifying and broadening our production capacity and capabilities in the field of pharma and natural medications and adding an efficient, high quality and reputable production base to Frutarom’s global production network.”

This transaction is the 30^th acquisition Frutarom has made in the past five years, and the fifth since the beginning of 2016. Yehudai said Frutarom will continue investing to grow its global activity through strategic acquisitions and research and development, as well as through partnerships with knowledge centers that specialize in natural ingredients.

He added that Frutarom has an excellent pipeline of future acquisitions which will contribute toward achieving its goal of $2 billion in sales by 2020.