Frutarom tasting lab (Courtesy)

One of the world’s largest flavors and fragrances companies is paying $7.1 billion for Haifa based Frutarom.

Frutarom Industries Ltd., a Haifa-based flavor and ingredients company, will combine with International Flavor & Fragrances Inc. (IFF), an American corporation and one of the world’s largest companies producing flavors, fragrances and cosmetic ingredients.

IFF’s takeover of Frutarom is the second largest of an Israeli company, behind Intel’s $15.3 billion purchase of Mobileye, a leader in autonomous driving technology.

Watch as Andreas Fibig of IFF and Frutarom’s Ori Yehudai discuss the agreement, which they say will make the company a global leader in taste, scent and nutrition.