Turpaz Industries Expands Operations in the UK with AFS Acquisition

Turpaz Industries Expands Operations in the UK

In a strategic move to solidify its position in the global flavor markets, Turpaz Industries (TASE: TRPZ) has announced the establishment of two dedicated branches in the United Kingdom. This expansion is part of Turpaz's ongoing global growth plan, which recently involved the acquisition of FE in September 2024, a company specializing in flavor extract development, production, and marketing.

The new branches will focus on two distinct areas: the flavor sector for the food and beverage industry, and the flavors sector tailored for vaping products. The latter has been made possible through the merger of Turpaz's existing vaping flavor extraction business with that of Advance Flavour Solutions Limited (AFS), a notable UK player in vaping flavor development. Founded in 2017, AFS has quickly gained a reputation for its innovative flavor solutions and has shown impressive revenue growth, reaching £8.1 million in 2024, up from £5.5 million in the previous year.

Enhancing Product Portfolios

With the integration of AFS, both companies anticipate significant opportunities to broaden their customer bases both domestically and internationally. The merger both enhances the product lines available to clients and leverages the synergies between AFS’s and Turpaz's operations. According to Dieno George, Chairman of AFS, this partnership signifies a strong commitment to quality and innovation, contributing to continual growth for both entities. George emphasizes this collaboration as a pathway to delivering a more expansive array of innovative solutions.

Karen Cohen Khazon, Chairman and CEO of Turpaz Industries, expressed enthusiasm about the AFS acquisition. She highlighted that this move is a critical step toward the company’s goals in the increasingly lucrative UK flavor market. The merger is expected to combine the technological expertise, customer relations, and distribution channels of both companies, potentially leading to accelerated organic growth in the food and beverage market while expanding their reach within the vaping sector.

Operations Overview

Following this strategic acquisition, Turpaz’s operations in the UK will effectively be divided into two branches:

1. FE: Focused on flavor extraction for the food and beverage industry, under a new CEO with extensive experience in the flavor market. The aim is to seek out further acquisition opportunities that could symbiotically enhance the current operations of FE.

2. AFS: Concentrating on flavor extraction for vaping, maintaining its original management team to ensure continuity and stability in operations. AFS will aim to consolidate all activities to optimize product supply and customer service while cutting back on management expenses.

As of May 2021, Turpaz has been listed on the Tel Aviv Stock Exchange and continues to be an influential competitor in the global flavors landscape, continuously seeking opportunities to broaden its influence. The establishment of these two specialized branches in the UK represents a pivotal moment in Turpaz’s strategy to maintain its growth trajectory and enhance its market share.

In conclusion, the merger with AFS not only amplifies Turpaz’s operational capacity in the UK but also positions the company to meet emerging market trends more effectively. By uniting strong brands under its umbrella, Turpaz is set to lead innovation in both food and vaping segments, promising exciting developments for their customers and shareholders alike.