Frutarom Buys Israeli Company Turpaz; Its 7th Acquisition This Year

Frutarom Industries Ltd (Frutarom) has signed an agreement for the purchase of 51 percent shares of Israeli company Turpaz Perfume and Flavor Extracts Ltd (Turpaz) at an overall cash-free debt-free company value of approx. $15.1 million.

The agreement includes an option for the purchase of the remaining balance of Turpaz shares starting about four years from the date of completion of the transaction at a price based on Turpaz’s business performance during the two years leading up to the date of notification on exercising the option. The transaction was completed upon signing and financed through bank debt.

This purchase will be consolidated into Frutarom’s flavours division.

Frutarom decided to launch a strategic move of developing global activity in fragrances, with emphasis on emerging markets with high growth rates. The Turpaz acquisition joins Frutarom’s small existing fragrances businesses situated mainly in India, Africa and Latin America.

“The acquisition of Turpaz is an important step towards the implementation of Frutarom’s strategy to develop global business in fragrances The Turpaz acquisition is a continuation of the implementation of Frutarom’s rapid and profitable growth strategy. This is the seventh acquisition we have made this year,” said Ori Yehudai, president and CEO of Frutarom Group.

“The field of fragrances is synergetic and complementary to the field of flavours in terms of, among other things, raw materials and production processes, and many players in Frutarom’s fields of activity engage in both flavours and fragrance activities together,” added Yehudai.