JERUSALEM (Reuters) - Israeli flavorings and specialty ingredients company Frutarom said on Sunday it signed a deal to buy 95 percent of Investissements BSA for 42.75 million Canadian dollars ($35.6 million), its fifth acquisition this year, as it seeks to expand further into North America and India.
The agreement is expected to be completed in the next few weeks, Frutarom said, noting that the transaction will be financed using bank debt. The deal also allows for the purchase of the remaining balance of shares starting two years from now at a price "conditional on the company's business."
BSA, which has a large production site in Montreal, develops and produces flavourings for processed meats and convenience foods. It had sales of 37 million Canadian dollars in the 12 months ending August 2014, Frutarom said.
"BSA's activity in India will contribute towards strengthening and securing Frutarom's position in the growing Indian market," Frutarom said.
Ori Yehudai, Frutarom's chief executive, said that until now, Frutarom has enjoyed market leadership position of savory products in Europe but the acquisition of BSA "is expected to boost its position in this field in North America and India as well."
"The BSA acquisition ... is a further step towards reinforcing Frutarom's leadership in this important field and we intend to continue investing towards substantially expanding our savory flavor activities in additional countries around the globe, including through acquisitions," he said.
Reporting by Steven Scheer, editing by Louise Heavens