Turpaz consolidates its operations in the United Kingdom via two branches with unique expertise: the flavors sector for the food and beverage industry, and the flavors sector for vaping, through the AFS transaction

This transaction is a continuation of Turpaz's global growth strategy, which began its entrance into the British market with the acquisition of F&E in September 2024, a company engaged in the development, production and marketing of flavor extracts

HOLON, Israel, Feb. 20, 2025 /PRNewswire/ -- Turpaz Industries (TASE: TRPZ), which is engaged in the development, production and marketing of flavor extracts and unique raw materials, announces today the creation of two branches to expand its operations in the United Kingdom – the flavors sector for food and beverages and the flavors sector for vaping, by merging Turpaz's flavor extract business for vaping in the UK with the corresponding business of Advance Flavour Solutions Limited, a leading UK company in the field of development, manufacture and marketing of flavor extracts for vaping.

AFS, founded in 2017, is a leading and growing company in the development, production and marketing of flavor extracts for vaping and operates a sophisticated manufacturing site, including sales and R&D, applications and development laboratories near Manchester, UK (close to the F&E plant in Blackburn). AFS has unique solutions and technologies, innovative products tailored to emerging market trends and a large customer base mostly in the United Kingdom.

AFS has shown consistent growth in recent years, with revenues growing by 48% in 2024 and totaling £8.1 million compared to £5.5 million in 2023.

The synergy between AFS and F&E is expected to create significant opportunities both through the expansion of the customer base in the UK and internationally, and through the enrichment of the integrated product portfolio and cross-selling through Turpaz's subsidiaries worldwide.

As part of the agreement, Turpaz's operations in the UK in the field of flavor extracts for vaping were transferred to a UK subsidiary of Turpaz, and merged with the corresponding operations of AFS, and in return Turpaz paid AFS shareholders 4.5 million pounds ($5.7 million), and allocated 75% of the shares of the UK subsidiary, so that after the completion of the transaction, Turpaz holds 25% of the company's shares.

Dieno George, Chairman of AFS: "This strategic partnership signifies a commitment to innovation, quality and growth for both AFS and Turpaz Industries. The collaboration means we can deliver a wider range of innovative solutions, enhance product development and continue to provide exceptional service to our customers."

Karen Cohen Khazon, Chairman and CEO of Turpaz Industries: "The acquisition of AFS is a significant step in the group's continued global expansion, with a strong emphasis on the greater UK market. We identify significant growth potential in the flavors market by combining the technological know-how, customer base and distribution channels of Turpaz and AFS. The combination of the companies will enable the leverage of the synergy between the companies, leverage of the competitive advantages, and accelerate the organic growth rate, while continuing to expand the food and beverage market. We are excited and welcome Dieno and Ben, Chairman and CEO of AFS respectively, and all AFS managers and employees to the Turpaz Group and are confident that the strategic collaboration between the companies will enable joint growth in the UK and around the world."

Upon completion of the transaction, Turpaz will operate through two branches in the British market:

F&E, the first branch, will focus on the development, production and marketing of flavor extracts for the food and beverage sector in the UK market. To this end, Turpaz recently appointed a new CEO for F&E activities, who has extensive experience in the flavor market and is also working to identify acquisitions in the field of flavor extracts for food in the UK market, which will be synergistic with F&E's activities.

AFS, the second branch, will specialize in the field of flavor extracts for vaping under the management of the sellers, who have many years of management experience in this industry. AFS will concentrate all AFS's and F&E's activities under it, with the aim of increasing the supply of products and customers, while realizing synergies between the activities and saving on management costs.

Turpaz, which was established in 2011 and listed on the Tel Aviv Stock Exchange in May 2021, has become a significant player in the global flavors market.

Company website: www.turpaz.co.il

Logo: https://mma.prnewswire.com/media/2380903/Turpaz_Logo.jpg

Contact:
Yoni Adini, General Counsel
[email protected]

SOURCE Turpaz Industries