TURPAZ INDUSTRIES ACQUIRES U.S. FLAVOR AND FRAGRANCE COMPANY PHOENIX FOR $95 MILLION

Acquisition Establishes Full-Scale U.S. Operational Platform; Combination with Turpaz's Existing Klabin Operations Expected to Drive Significant Synergies

CAESAREA, Israel, May 3, 2026 /PRNewswire/ -- Turpaz Industries Ltd. (TASE: TRPZ), a global company that develops and manufactures flavors and fragrance, intermediates and specialty fine ingredients and markets and sells them in more than 90 countries around the world, announced today that its wholly-owned U.S. subsidiary Klabin-Turpaz, Inc., has signed and closed an agreement to acquire 100% of the share capital of Phoenix Flavors & Fragrances Inc. ("Phoenix"), a U.S.-based developer and manufacturer of fragrance and flavor extracts, from a U.S. private equity fund (the "Seller"), for $95 million, plus up to an additional $5 million contingent consideration based on Phoenix's performance during the second and third quarters of 2026. The transaction was finalized on the day of closing and financed entirely from Turpaz's own resources.

Karen Cohen Khazon, Chief Executive Officer of Turpaz Industries, said, "We welcome the Phoenix team and its highly experienced management team to the Turpaz Group. The acquisition of Phoenix marks an important strategic step for Turpaz and significantly strengthens our presence in North America – one of the most important flavor and fragrance markets in the world. By integrating Phoenix with our existing U.S. Klabin operations, we are creating a full-scale operational platform in the U.S., spanning development, production, marketing and sales, in both the fragrance and flavor sectors, that we believe will support our continued growth in the region. We expect meaningful synergies from combining the two businesses, both through consolidated production at the Norwood site and through expanded cross-selling opportunities across our combined customer base."

JP Benveniste, Chief Executive Officer of Phoenix Flavors & Fragrances, said, "I am thrilled, as is everyone in our organization, to be joining forces and partnering with Turpaz. This acquisition not only represents a perfect fit of values and industry expertise, but also allows us to seamlessly integrate our strengths into Turpaz's global platform. Together, we are well-positioned for significant growth and innovation in the very near future."

Phoenix Flavors & Fragrances, headquartered in Norwood, NJ, develops, manufactures, markets and sells fragrance extracts used primarily in air care, personal care and home fragrance products, alongside flavor extracts for the food and beverage industry, and serves a broad customer base of several hundred customers across the U.S. flavor and fragrance markets. Over the past several years, Phoenix has expanded its footprint through complementary acquisitions, including Ascent Aromatics (2017), Creative Concepts (2018) and Innovative Fragrances (2022). During 2025, Phoenix completed a comprehensive reorganization and operational efficiency program, which included the consolidation of its fragrance manufacturing sites, opening of a new flavors production facility in South Bend, Indiana, and implementation of advanced IT systems - measures that contributed to improved operational efficiency and a stronger cost structure. 

Phoenix currently operates three leased U.S. sites – a fragrance production facility in Norwood, New Jersey (~ 3,500 sqm); aflavor production facility in South Bend, Indiana (~ 2,000 sqm); and an advanced R&D center in Red Bank, New Jersey (~1,200 sqm) with strong development capabilities,– and employs 76 people. Phoenix's existing management team is expected to continue leading the business following completion of the acquisition.

In 2025, Phoenix generated revenues of $36.8 million and adjusted EBITDA of $6.9 million, compared with sales of $36.6 million and adjusted EBITDA of $5.1 million in 2024.

The acquisition strengthens and expands Turpaz's footprint in North America – one of the world's largest flavor and fragrance markets – and establishes a full-scale U.S. operational platform combining development, manufacturing, marketing and sales capabilities, expected to support the Group's continued growth in the region. Phoenix integrates directly with Turpaz's existing U.S. fragrance operations under Klabin, which Turpaz acquired in 2022. Turpaz expects to consolidate fragrance production by transferring Klabin's manufacturing into Phoenix's Norwood, New Jersey site, driving operational efficiencies, cost savings and an improved cost structure for the group's U.S. activities. The combined platform is also expected to expand the group's customer reach in the U.S. through cross-selling, broader product offerings and combined development and innovation capabilities.

Turpaz estimates that synergies of approximately $2 million will be realized over the coming quarters through the integration of Klabin and Phoenix. The acquisition is also expected to generate additional synergies with Turpaz's existing Fine Fragrance business, particularly in serving global premium fragrance customers.

Forward-Looking Statements

This press release contains forward-looking statements regarding, among other things, Turpaz's expectations with respect to the realization of synergies from the integration of Phoenix and Klabin, the consolidation of fragrance production at Phoenix's Norwood, New Jersey site, expected operational efficiencies and cost savings, and the expected improvement in the profitability of the Group's North American operations. 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.

The Company operates, independently and through its subsidiaries, in three operating segments - the fragrance segment, the taste segment, and the specialty fine ingredients segment. As part of this activity, Turpaz is engaged in research, development, production, marketing, distribution and sale of natural and synthetic sweet and savory taste extracts, seasonings, unique functional solutions for the field of baking, raw materials for the meat and baking industries, special (gluten free) flours, fragrance extracts, used in the production of cosmetics, toiletries, personal care, air care & odor neutralizers products; and specialty fine ingredients which include citrus products and aroma chemicals used in the taste and fragrance industries, and raw materials for the pharma and fine chemicals industries. The company's business strategy is based on organic growth at a rate higher than market growth, and successful and systematic implementation of strategic acquisitions.

Advisors

Cascadia Capital, LLC acted as financial advisor and Kirkland & Ellis LLP acted as legal counsel to SK Capital and Phoenix. Stifel, Nicolaus & Company acted as financial advisor and OlenderFeldman LLP acted as legal counsel to Turpaz in this transaction.

For more information, please visit Turpaz's website, at: https://www.turpaz.co.il/Investors 

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

SOURCE Turpaz Industries