Turpaz Industries, an Israeli firm that develops, manufactures and markets fragrance extracts, flavor extracts, intermediates for the pharmaceutical industry and raw materials for the agro industry and fine chemicals and citrus products and aromatic chemicals, has signed an agreement to acquire control (81%) in Klabin Fragrances, an American custom fragrance, natural oil blends, and extracts company, for a total of $24.3 million.
The deal is subject to adjustments based on Klabin’s business performance during the year 2022. The company intends to finance the transaction partly from independent sources and partly from bank financing. The purchase agreement includes options to purchase the remaining shares of Klabin (19%) depending on performance, exercisable starting January 2026 for a period of one year.
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Established in 1970, Turpaz describes itself as a multinational flavor and fragrance house and fine ingredients company. Turpaz’s activities include the development, production, and marketing of an extensive variety of high-quality flavors, fragrances, and natural and synthetic fine ingredients for customers in the food, beverage, functional food, flavor, fragrance, pharmaceutical/nutraceutical, and cosmetic industries.
Klabin was founded in 1994, by Saul Klabin and began operations in 1998. The company is engaged in the research, development, production, marketing, sale and supply of custom fragrance, natural oil blends, extracts, natural and synthetic ingredients, raw materials, applications and functional solutions for the cosmetics, toiletries, candles, body and hair care, diffusers, detergents and fine fragrances markets. Klabin’s sales in 2021 totaled $9.7 million and EBITDA totaled $2.4 million.
Its founders and managers, Saul Klabin and Justin Klabin, will join the global management team of the Turpaz Industries group and will continue to manage and lead its activities in the coming years, as well as the activities of Turpaz USA in the field of fragrance extracts, which will be merged with it.
Karen Cohen Khazon, Chairman of Turpaz Industries said, “We are very happy about Klabin joining the Turpaz group and congratulate its employees and managers who are joining the Turpaz family. Saul Klabin’s many years of experience and skills in the field of development and marketing of fragrance extracts have led to Klabin’s success and we are sure that they will contribute greatly to the continued development of the perfume segment within the Turpaz group. Turpaz strengthens its activity, its presence and its position as a major player in the field of fragrances in North America by signing an agreement to acquire control of Klabin, which is strategic for the company. This acquisition will allow Turpaz to merge its current activities in the field of fragrances in the USA together with Klabin activities. Turpaz under my management will continue to implement its integrated growth strategy, which includes organic growth and synergistic acquisitions for our operations made possible thanks to a strong capital structure, low leverage and experienced and strong global management “.
Justin Klabin, VP and operations manager of Klabin: “We found a synergistic partner with the Turpaz group. Combining the capabilities and resources of the two companies will lead to maximizing efficiencies and capabilities, while expanding joint growth in the American market. Together we will combine resources to deepen the range of solutions and products for our customers. Our long history with the CEO and managers at the Turpaz Group gave us the confidence to bring this partnership together. We look forward to maximizing our capacity and potential at our New Jersey facility.”
