Ninth acquisition for Turpaz since the IPO

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Jun 12, 2023, 09:00 ET

Turpaz acquires control of the Hungarian flavor company Food Base, a company specialize in the production, development and marketing of flavors, herb extracts and essential oils for the food and beverage industry

HOLON, Israel, June 12, 2023 /PRNewswire/ -- Turpaz Industries (TASE: TRPZ), continues the momentum of its acquisition campaign and the implementation of its growth strategy, announcing today that it has signed an agreement to purchase 60% of the shares of the Hungarian company, Food Base, for a consideration of 9.5 million dollars (3.3 billion Hungarian Forint), from which 60% of Food Base's net debt will deducted at the time of completion of the transaction. Additionally, the Seller will be entitled to future consideration will be based on Food Base's business performance during the years 2023-2024. The agreement includes a call option for Turpaz to purchase the remaining Food Base shares, exercisable after three years from the expiration date completion of the transaction. Food Base's sales turnover in 2022 amounted to 5.7 million dollars (2.1 billion Hungarian forints). The transaction will be financed through bank debt. Completion of the transaction is expected in the coming months, subject to receiving regulatory approvals in Hungary.

Food Base's state-of-the-art factory in Budapest, Hungary

Food Base was founded in 2004 by Tamás Győrfi and today is a leading and growing company offering flavors and plant extracts to the Hungarian market, as well as exporting to other European countries. Food Base has a research and development center, a marketing and sales system and owns a modern and efficient production site measuring 4.5 dunams, located on land of 8.3 dunams in Budapest. The factory has a large production capacity with the possibility for significant expansion. Food Base employs 55 people, of which 10 are engaged in research and development and have advanced academic degrees. The main activity of Food Base is the development, production, marketing and sale of sweet flavors and natural herbal extracts for the food and beverage industry, with an emphasis on convenience food, health drinks and snacks, as well as unique raw materials for the nutritional supplement industry. The Food Base website: https://foodbase.hu/en/

The acquisition is synergistic for Turpaz's activities and is expected to significantly increase the circle of customers and the volume of sales, while expanding the product portfolio, deepening its activities and its market share in emerging markets. Turpaz intends to utilize the development, production and sales capabilities of Food Base to develop its business in the area.

According to Karen Cohen Khazon, Chairperson of the Board and CEO of Turpaz: "This acquisition continues the implementation of the global growth strategy of the Turpaz Group, and strengthens our presence and our market share in emerging markets, while continuing to strengthen Turpaz's position as a leading global player. The capabilities of Food Base and its many years of experience in the field of flavors for the food and beverage industry will be a strategic asset for Turpaz. We expect that sales in the markets where Food Base is active will continue to grow in the coming years as a result of changes in consumer preferences and the continued transition to the purchase of convenience food and health beverages as well as, as a result of the synergy of customers, products and technologies between the group companies."

The Turpaz Group welcomes the addition of Tamás Győrfi, CEO of Food Base, and all the company's employees to the Turpaz family and is confident that their integration into Turpaz will allow us to leverage the continued growth of the Food Base company and the entire Turpaz Group in the global markets.

Tamás Győrfi, CEO of Food Base: "I am excited to join the Turpaz group and I was impressed by its range of strong capabilities in the field of flavors. The partnership between us will allow Food Base to grow based on the combined expertise, knowledge and geographic distribution of both companies, and provide the best value to our customers in the markets in which we operate."

About Turpaz:

Turpaz was established in February 2011 and operates on its own and through its subsidiaries in the development, production, marketing and sales of scent extracts used in the production of cosmetics and toiletries, personal care products and atmospheric application; flavor extracts used in food and beverage production; unique intermediates for the pharmaceutical industry and unique raw materials for the agro and fine chemical industry; and citrus products and aroma chemicals for the flavor and fragrance industry.

The Turpaz group has a wide and diverse portfolio of products, the result of in-house development and manufacture. Turpaz develops, manufactures, markets and sells products to more than 2,000 customers in over 30 countries around the world and operates 13 production sites that include research and development centers, laboratories and sales, marketing and regulatory offices in Israel, the USA, Poland, Belgium, Vietnam, Latvia and Romania. Company website: www.turpaz.co.il

Contact:

Yoni Adini
[email protected]

SOURCE Turpaz Industries