Hartlepool chemical firm targeted by Israeli group
Jan 9 2009 by Peter McCusker, The Journal
A HARTLEPOOL chemical firm employing 70 people looks like being snapped up by new cash-rich owners after its parent company agreed to offload it in a bid to reduce its £100m-plus debt.
Oxford Chemical company, which manufactures food and fragrance flavours and exports 90% of its output, is in the process of being sold for £8.25m to Israeli company Frutarom.
Anthony Weston, Oxford managing director, believes the proposed takeover is an “excellent opportunity” for the company.
Essex-based Yule Catto & Co, a FTSE-listed chemical company which has owned Oxford for over 10 years, says the proceeds of the sale will be used to reduce its borrowings.
Mr Weston, who has been MD of the company for the last two years, said: “This is good news for Oxford Chemicals. It’s an excellent opportunity to become part of a very successful group. It will give us the opportunity to expand into new markets by taking advantage of Frutarom’s global sales and marketing team.”
Mr Weston went on to say Frutarom had ambitious growth plans and that he expected to see Oxford’s manufacturing facilities “enhanced”.
Oxford, which was started in 1973 as a spin-off of Oxford University and moved to Hartlepool in 1998, notched up profits of £600,000 on the back of a turnover of £9.7m last year.
Frutarom says it expects to increase Oxford’s profit in the next year by 50% to £900,000 by “achieving operational savings from the integration of activities”.
Tel Aviv stock exchange-listed Frutarom is a global flavour and ingredient company which has a plant in Billingham and operates 18 production facilities in Europe, North America, Israel and Asia employing 1,500 worldwide.
Ori Yehudai, president and chief executive officer of the Frutarom Group said: “Frutarom will act immediately to integrate Oxford’s activity with that of Frutarom’s Fine Ingredients Division (which has a facility in Billingham) while realising and utilising the extensive commercial and operational synergy that exists between Frutarom’s operations and Oxford’s operations in order to take maximum advantage of the cross-selling opportunities and achieving maximum cost savings.”
A Frutarom statement said that it is looking for further “acquisition opportunities” which are being “created due to the global economic crisis”.
