Turpaz and Klabin’s US$24.3M fragrant fuse marks “major” presence in US
21 Sep 2022 --- Isreal-based Turpaz Industries is announcing 81% control in Klabin for a total of US$24.3 million to maximize fragrance capacity and potential at its New Jersey facility. The company plans to use a combination of bank financing and funding from independent sources to pay for the transaction.
This acquisition marks Turpaz’s fourth since the beginning of 2022 and seventh overall since it went public in May 2021.
“Turpaz strengthens its activities, its presence and its position as a major player in the field of fragrances in the US by signing an agreement to acquire control of the Klabin company, which is strategic for the company. This purchase will allow Turpaz to merge its current activity in the field of fragrances in the US together with Klabin’s activity,” Karen Cohen Khazon, chairman at Turpaz, says.
The purchase agreement includes options to acquire the remaining shares of Klabin (19%) depending on performance and is exercisable starting January 2026 for a duration of one year. The acquisition is subject to revisions based on Klabin’s business success throughout the year 2022.
Turpaz creates, produces and sells intermediates, raw materials for the agro-business, fine chemicals, citrus products and aromatic chemicals in addition to fragrance extracts, flavor extracts and intermediates for the pharmaceutical industry.
Combining resources
Justin Klabin, VP and operations manager of Klabin, explains that the company “found a synergistic partner with the Turpaz group.” He says, “combining the capabilities and resources of the two companies will lead to maximizing efficiencies and capabilities, while expanding joint growth in the US market.”
The companies function in the fragrance industry, and through this acquisition, they aim to combine capabilities and maximize efficiency.“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.”
He says the two companies aim to maximize their capacity and potential at the New Jersey facility.
Since its founding in 1994, Klabin has focused on the development of custom fragrances, natural oil blends, extracts, natural and synthetic ingredients, raw materials, applications and functional solutions for the markets for candles, body and hair care products, cosmetics, toiletries, detergents and fine fragrances.
Sales for Klabin in 2021 totaled US$9.7 million and EBITDA came to US$2.4 million.
Staying in the loop
Saul Klabin and Justin Klabin, the creators and managers of Klabin, will now be a part of Turpaz’s worldwide management team. They will continue to oversee and manage operations there for the foreseeable future, including those of Turpaz USA in the fragrance extracts sector, which is set to be merged with the company soon.
“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,” comments Khazon.
“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,” she concludes.
Edited by Mieke Meintjes
