The Times of India: May, 2015
Chennai: Israeli flavours and fragrances firm Frutarom Industries has acquired 60% stake in privately held Bengaluru-based Sonarome Private Ltd, for Rs 110 crore in an all cash deal, with the right to buy the remaining over the next two years, subject to accomplishment of performance milestones. The Indian firm has been valued at Rs 180 crore.
Sonarome is into development, production and marketing of flavours and fragrances for perfumes, food and pharmaceutical sectors and counts Nestle, Cadbury's and Amul amongst others as its clients. While the Israeli company has strong presence in the US and EU markets, it was looking at a strategic acquisition to enter the Indian space.
"Frutarom has set itself the goal of expanding its activity in the emerging high-growth markets of India and Africa, both through internal growth and by means of acquisitions. The acquisition of Sonarome, is another key step towards attaining this goal," said Ori Yehudai, President and CEO of Frutarom Group in a statement.
KPMG were the advisors to Sonarome in the transaction which saw fierce bidding by global flavours and fragrances giants like Solvay, Kerry amongst others. "This partnership provides a solid launchpad for Frutarom in the Indian and African markets. The promoters of Sonarome built a quality and a profitable business and will be closely involved in leading it into the future to realize significant growth, said KV Ramanand, partner, deal advisory, KPMG, who also advised Sonarome.
The founders of Sonarome - TS Gulhati and R Gulhati, and their son N Gulhati - will continue in their roles as management and shareholders in the company. Sonarome's last fiscal revenues were Rs 85 crore.