Acquisition of an Irish Flavors Company

Below is the immediate report submitted today to the Israeli Securities Authority ("ISA") and the Tel-Aviv Stock Exchange through the ISA's electronic submission system in accordance with the Securities Regulations (Periodic and Immediate Reports), 1970.

Frutarom Industries Ltd.

Registration No.:  52-004280-5

The securities of Frutarom Industries Ltd. are listed for trading on the Tel-Aviv Stock Exchange

Name:  Frutarom

25 HaShaish St., P.O.B. 10067, Haifa 2611001

Tel:  +972-4-846 2401, Fax:  +972-4-872 2517, www.frutarom.com

Email:   tmirsky@frutarom.com

August 3, 2016

Immediate Report

Subject: Acquisition of an Irish Flavors Company

Frutarom Industries Ltd. ("Frutarom") hereby announces that on August 2, 2016 it signed, through a subsidiary, an agreement for the purchase of 100% of the shares in the Irish company Redbrook Ingredient Services Limited ("Redbrook") in exchange for approximately USD 44.8 million (€ 40 million). The purchase agreement includes a mechanism for additional consideration based on Redbrook's future business performance. The transaction was completed at the time of signing and was financed through bank debt.

Redbrook was founded in 1987 and has an R&D, sales and marketing center and production site near Dublin, Ireland, as well as a production unit and R&D and sales and marketing center in Daventry, England, near Frutarom's site at Wellingborough, England. Redbrook has 39 employees.

Redbrook's main activity is the development, production and marketing of innovative specialty savory taste solutions, which includes seasoning and functional blends, marinades, glazes, cures and specialty ingredients for food processors.

Redbrook sales for the 12 month period ending June 2016, according to current exchange rates, amounted to approximately US$ 25.4 million (approximately €22.7 million). The financial figures shown here are based on Redbrook's managerial reports for the 12 month period ending June 30, 2016.

The CEO of Redbrook, who has many years of experience in the industry and has headed the company's growth in recent years, will continue in his role and will join Frutarom's Flavors activity management.

Frutarom does not view this transaction as the purchase of a material asset.

This report includes forward-looking statements as defined in the Israel's Securities Law, 1968. Such information includes, inter alia, data, forecasts, objectives, assessments, estimates, and/or other information regarding events or future matters, the transpiring of which is not certain and are partly not solely under Frutarom's control.

This forward-looking information is based on assessments by Frutarom management which are in turn based, inter alia, on information known to Frutarom at this point in time, including assessments concerning Frutarom's fields of activities, goals, objectives, strategy, events, and future intentions.

Forward-looking statements are, by their nature, subject to risks and uncertainties. The materialization or non-materialization of forward-looking statements will be influenced, inter alia, by risk factors characterizing Frutarom's activity as well as by developments in its general business environment and external factors affecting the Frutarom Group (including Redbrook) and its fields of activity.

Sincerely yours,

Tali Mirsky, Adv.

Global VP Legal Affairs & Corporate Secretary

Frutarom Industries Ltd.