ISRAEL – Israeli’s flavor and fine ingredients company, Frutarom Industries has bought a 51% stake, which is valued at about $15.1million in a local company Turpaz Perfume and Flavor Extracts.
Considerations paid by Frutarom for the shares are US$4.1million with an additional investment of approximately US$7.6million into the company.
According to Turpaz management reports, revenue of the 12 months ending June 2017 was US$6.2million with high profitability margins than Frutarom flavors division.
Turpaz has a verse portfolio of products and solutions, which are based on the experience, broad customer base and impressive growth over the years. This led to its increase in profitability margin.
According to Reuters, Frutarom president and CEO Ori Yehudai, “The acquisition of Turpaz is an important step towards the implementation of Frutarom’s strategy to develop global business in fragrances.
The field of fragrances is synergetic and complementary to the field of flavors in terms of, among other things, raw materials and production processes, and many players in Frutarom’s fields of activity engage in both flavors and fragrance activities together.
Frutarom’s strong management is now solid enough and well enough established to develop this additional area of activity.”
He added, “We see interesting and diverse growth opportunities for fragrances, especially in emerging markets, and the potential to perform acquisitions of companies with combined flavor and fragrance activities, including in countries where Frutarom is already active, with the potential to realize interesting operational synergies.
The Turpaz acquisition is a continuation of the implementation of Frutarom’s rapid and profitable growth strategy.’’
September 6, 2017