Frutarom Industries has purchased Raychan Food Industries to further improve its line of savoury market products.
Frutarom signed an agreement to purchase the flavour compounds company Raychan for US $1.05m. Following the attainment of 100 percent of the share capital, the company would like to use its purchase to expand Raychan's Israeli centred market into Eastern Europe and Turkey.
Frutarom plans to use Raychan to incorporate its products into the company's Flavours Division, its most profitable department. According to Frutarom.com, Raychan makes and sells ingredients for the food industry. President and CEO Ori Yehudai said in a press release that Frutarom's purchase will, “achieve optimal use of the cross selling opportunities and the greatest saving in expenses.”