Industry analysts anticipate this acquisition to provide additional reinforcement to the growing activity in natural specialty fine ingredients and clinical nutrition industry, which is expanding at a commendable rate. Moreover, the merger is also expected to gain lucrative gains through cross-selling opportunities and expansion of its consumer base over its vast product portfolio.
Sources reveal that Frutarom particularly considers Enzymotec’s nutrition segment to play a key role in enhancing its profit margins in healthcare and medical devices industry. In addition, it has been revealed that the company intends to establish its footprint in the fields of dietary supplements, pharmaceuticals, designated foods for infants, and elderly clinical nutrition. Reports claim that Frutarom also strategizes to penetrate clinical nutrition market with Enzymotec’s leading infant formula product InFat. Enzymotec’s nutrition segment, for the record, is claimed to be one of its most lucrative sectors, as it contributed to more 77% of sales in 2016.
The multi-million-dollar transaction is subject to fulfillment of certain customary conditions and approval by the shareholders of Enzymotec to closing.
Sources familiar with the matter anticipate the transaction to be closed by Q1 2018.