Frutarom Expansion

complete

Provision of a EUR 50 million loan to Frutarom (UK) Ltd. (the "company"), subsidiary of Frutarom Industries Ltd. The EBRD loan, will be used for (i) re-financing of the company's acquisition of Slovenia's Vitiva d.o.o., (ii) re-financing of the company's acquisition of Poland's AMCO Sp. z o.o, and (iii) financing of post-acquisition capex and working capital needs. The proposed project will allow the company (i) to strengthen the position in Polish and Slovenian markets; (ii) to leverage on compatible AMCO's and Frutarom's R&D, sales and marketing infrastructure and production and supply chain platform in Poland with the aim of realising crossselling opportunities by expanding both the customer base and the product portfolio; as well as to capitalise on operational synergies between AMCO's and Frutarom activities; and (iii) to capitalise on many cross-selling opportunities from the acquisition of Vitiva. The market expansion combined with the consolidation of operations will result in continued improvements of operational efficiencies in the operations in Poland and Slovenia. Furthermore, the relations with suppliers and customers in these markets will be strengthened, benefiting all parties. FRUTAROM UK LTD Frutarom Industries Ltd. is one of the largest producers of flavours and specialty fine ingredients for the food industry. EUR 80,000,000.00 EUR 80,000,000.00 Categorised B. ESD undertook in-house due diligence focusing on the review of the corporate EHSS and HR management systems and regulatory compliance status and including an audit of the recently acquired Slovenian businesses of Frutarom. The newly acquired Polish businesses, which make part of the Project, were not visited and are subject to an internal ESDD assessment after signing. A corporate-level ESAP has been developed and agreed with the Company. It has been established that the Company is generally in compliance with the requirements of the EBRD's PRs, has well-established EHSS management systems and institutional capacity to implement the Project, supported by the Management commitment to ensure that all the recent and future acquisitions financed by the EBRD will be operated and managed in compliance with the Bank's performance requirements. An ESAP was developed to ensure continued compliance with both national and EU standards for social, environment, health and safety and EBRD's ESP 2014. ESAP includes actions for continued improvement of corporate supply chain management, further development HR policies as well as extension of the corporate EHS framework to all newly acquired businesses. The Bank will be monitoring the Company's environmental and social compliance and progress on ESAP implementation on an annual basis. None. Zachory Frost zfrost@frutarom.com +44 1933446191 +44 1933 274414 www.frutarom.com Frutarom (UK) Limited Turnells Mill Lane Dennington Industrial Estate Wellingborough Northamptonshire NN8 2RN United Kingdom