Acquisition Marks Turpaz's First Entry into South Africa's Fragrance Market and Advances the Group's Strategy to Build an Integrated Regional Flavor and Fragrance Platform in Africa
CAESAREA, Israel, Nov. 2, 2026 /PRNewswire/ -- Turpaz Industries Ltd. (TASE: TRPZ), a global company that develops and manufactures flavors and fragrances, intermediates and specialty fine ingredients and markets and sells them in more than 100 countries around the world, announced the acquisition of 70% of the share capital of Sensory FX Proprietary Limited ("Sensory"), a privately held South African developer and manufacturer of flavors and fragrances, through its South African subsidiary Sunspray Solutions Proprietary Limited ("Sunspray"). The consideration for the 70% stake is approximately $10.6 million (approximately ZAR 177.4 million), paid upon signing, plus additional consideration based on Sensory's performance during the period from March 1, 2026 to February 28, 2027. The transaction closed upon signing and was financed through long-term bank debt.
Sensory's existing shareholders, who have extensive experience in the South African flavor and fragrance industry, will retain the remaining 30% of Sensory's shares and will continue to lead its management and operations in the coming years. The agreement includes mutual put/call options for the remaining shares, exercisable from two or three years after closing, depending on the shareholder, at a price based on Sensory's business performance through the exercise date, payable in cash or in Turpaz shares at the shareholders' election.
Karen Cohen Khazon, Chief Executive Officer of Turpaz Industries, said, "We are excited to welcome Sensory and its experienced, professional team to the Turpaz Group. This acquisition is an important step in implementing Turpaz's growth strategy by expanding our presence in emerging markets and leveraging synergies across the Group. For the first time, Turpaz is entering the fragrance market in South Africa, and the acquisition provides a foundation for further developing a regional platform for flavors and fragrances across Africa. By combining Sensory's local development and manufacturing capabilities with Turpaz's expertise, technologies, broad product portfolio and global presence, we will be able to expand the solutions we offer our customers and pursue further growth opportunities across the continent."
François Strydom, Chief Executive Officer and a shareholder of Sensory, said, "We've always believed that South Africa could produce a fragrance and flavour company capable of competing with the very best in the world. This partnership validates that belief and marks an exciting new chapter for SensoryFX. We are proud to join the Turpaz Group and look forward to what we can achieve together."
Joseph Muhohoma, Vice President of Research and Development and a shareholder of Sensory, added, "We believe that joining Turpaz will enable us to expand the range of solutions we offer our customers, deepen our presence in the markets in which we operate, enter new markets and capture additional growth opportunities across the continent."
Founded in 1999, Sensory develops, manufactures and markets flavors and fragrances and a range of solutions for the food and beverage, personal care, home fragrance and consumer products industries. Sensory is one of the few independent local manufacturers of fragrance extracts in South Africa, and serves a broad and diverse customer base in South Africa and in additional markets across Africa.
Sensory operates a leased production site and a state-of-the-art R&D center, opened approximately a year ago, in the Johannesburg area, staffed by perfumers and flavorists with many years of experience, and employs 75 people. Sensory's operations are located in close proximity to Turpaz's existing South African businesses – Sunspray, which specializes in spray-drying solutions for the food and beverage industry, and Nicola-J, which operates in the flavor sector.
In its fiscal year ended February 28, 2026, Sensory generated revenues of $10.9 million, up approximately 18% from $9.2 million in the prior fiscal year. Gross profit was $5.7 million, operating profit was $2.0 million, EBITDA was $2.4 million and net profit was $1.7 million, compared with gross profit of $4.7 million, operating profit of $1.5 million, EBITDA of $1.8 million and net profit of $1.1 million in the prior fiscal year. These figures are based on adjusted management accounts prepared in accordance with IFRS, excluding one-time, non-recurring expenses that will not continue following the completion of the transaction.
The acquisition of Sensory marks Turpaz's first entry into the South African fragrance market and represents a further strategic step in expanding the Group's geographic footprint and strengthening its presence in Africa. The acquisition will enable Turpaz to advance the establishment of an integrated regional flavor and fragrance platform in Africa, built on local development and manufacturing capabilities combined with the know-how, technologies and resources of the global Group.
The combination of the businesses is expected to generate commercial, technological and operational synergies through the integration of know-how, R&D capabilities, product portfolios and procurement, to broaden the range of solutions offered to customers, to deepen activity in existing markets and to create cross-selling opportunities and access to new customers and markets. In addition, combining Sensory's local fragrance manufacturing capabilities with Turpaz's global expertise, technologies and product portfolio is expected to enable a fast, flexible and tailored response to customer needs in South Africa and in other markets across the continent.
Forward-Looking Statements
This press release contains forward-looking statements regarding, among other things, Turpaz's expectations with respect to the establishment of an integrated regional flavor and fragrance platform in Africa, the realization of commercial, technological and operational synergies from the acquisition of Sensory, expected cross-selling opportunities and expansion into new customers and markets, and the put/call options for the remaining shares of Sensory. Such forward-looking statements are based on estimates, projections and assumptions of Turpaz's management as of the date of this release, which may not materialize, in whole or in part, or may materialize in a manner different from that anticipated, including as a result of changes in market conditions, changes in the business environment and the materialization of risk factors detailed in section 1.28 of Chapter A of the Company's Annual Report for 2025.
About Turpaz Industries Ltd.
Turpaz Industries Group is a global company operating in the fields of flavor, fragrance and specialty fine ingredients. The Group develops, manufactures, markets and sells thousands of products to more than 5,100 customers in over 100 countries around the world. Turpaz operates 31 manufacturing sites, research and development centers, laboratories and sales, marketing and regulatory offices worldwide, and employs more than 1,200 people. Since 2017, the Company has completed 29 acquisitions worldwide, which have expanded its geographic footprint, strengthened its development and manufacturing capabilities and broadened the range of products and solutions offered to its customers. The Company's business strategy is based on organic growth at a rate higher than market growth, and the successful and systematic implementation of strategic acquisitions.
For more information, please visit Turpaz's website, at: https://www.turpaz.co.il/Investors.
International Investor Relations
Ehud Helft
EK Global Investor Relations
turpaz@ekgir.com
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