Eighth Acquisition For Frutarom In 2016

FRUTAROM ACQUIRES 75% OF PIASA GROUP, MEXICO'S LEADING LOCAL COMPANY FOR SAVORY SOLUTIONS, FOR MXN 405 M (APPROX. USD 20.5 M 1¿ )

MXN 800 M (APPROX. USD 45 M 2 ) SALES BY PIASA IN 12 MONTH PERIOD ENDING SEPT 2016 AFTER GROWING AT AN AVERAGE ANNUAL RATE OF APPROX. 8% OVER THE PAST 5 YEARS

FRUTAROM CONTINUES PENETRATING GROWING LATIN AMERICAN MARKETS & FORTIFYING ITS PRESENCE IN THE MEXICAN MARKET

PIASA'S ADVANCED PRODUCTION PLATFORM AND STRONG R&D AND MARKETING INFRASTRUCTURES WILL FORM THE BASIS FOR CONTINUED EXPANSION AND DEEPENING OF FRUTAROM ACTIVITY IN MEXICO AND LATIN AMERICA

HERZLIYA, Israel, Nov. 10, 2016 (GLOBE NEWSWIRE) -- Frutarom Industries Ltd. (" Frutarom"), one of the world's 10 largest companies in the field of flavors and natural specialty fine ingredients, continues its momentum of acquisitions and the implementation of its rapid and profitable growth strategy: The Company announced today the signing of an agreement for the purchase of 75% of the shares of the Mexican group GRUPO PIASA S.A. de C.V. (" Piasa"), Mexico's top local provider of savory solutions, in exchange for overall consideration, including debt, of approximately MXN 405 million (approx. USD 20.5 million based on current exchange rate). In the framework of the transaction Frutarom will also acquire the real estate housing Piasa's main production site, located in Monterrey, Mexico, which also serves as its headquarters.

The purchase agreement includes a mechanism for future consideration based on Piasa's future business performance, along with an option for the purchase of the balance of shares beginning five years after completion of the transaction at a price contingent on the company's future business performance. The transaction is expected to be completed within the next several weeks and will be financed through bank debt.