Arrowpoint Advisory's Industrial sector team has completed another successful transaction with the sale of Belmay Limited, the flavours division of Belmay Holding Corporation to Frutarom Industries Limited.
Belmay is a leading UK flavour house that develops, produces and markets flavours for the food and beverage industry. The company operates from a location close to Frutarom's existing UK production operations in Northampshire, employing 85 people. Belmay's extensive customer base includes leading food and beverage manufacturers in the UK, Europe and the Far East.
The acquisition has made Frutarom the leading flavour house in the UK market and strengthens its position as a leading global flavours producer and supplier. Frutarom will also benefit from the significant addition of experience and skilled employees at all levels.
Having received an unsolicited approach from the Israeli purchasers, Ted Kesten, Chairman and CEO of Belmay called in Arrowpoint Advisory to handle the offer and lead negotiations. He comments: “With Belmay's continuing focus on its fragrance activities, the UK flavours division was considered non-core. The flavours division represented an attractive acquisition opportunity either as a strong platform for expansion into Europe as well as a complementary business to add to Frutarom's existing business. Working with Arrowpoint Advisory, we achieved a great result, selling the company to an acquirer who will continue to develop the business.”
Patrick Groarke, Managing Director at Arrowpoint Advisory, comments: “Belmay is an extremely attractive asset in a consolidating market. The potential of a combined Belmay / Frutarom operation will create a flavours powerhouse with strong representation in a number of geographic markets. Overall, we have noticed an increase in the level of transaction activity in the Food and Beverage sector, and this transaction represents Arrowpoint Advisory's third food deal in six months.”