Turpaz Industries Expands European Footprint with Carotex Acquisition in Poland

Strategic Expansion in Europe: Turpaz Acquires Carotex

In a significant move to bolster its footprint in the competitive flavors and fragrances sector, Turpaz Industries Ltd. (TASE: TRPZ) has successfully acquired the operations of Carotex, a Polish company specializing in the flavors and fragrances market. This acquisition, priced at $23.4 million (PLN 87.2 million), marks a strategic step forward for Turpaz as it seeks to enhance its offerings across Europe.

Founded in 1989, Carotex has established itself within the Polish market as a leader in the development and manufacturing of sweet flavors, emulsions, and colorants tailored for both beverages and food products. The company also boasts a robust fragrance portfolio for personal care, cosmetics, air care, and detergents. With a workforce of 31 employees, Carotex serves a diverse range of customers, particularly in Poland, and offers solutions that complement the existing product lines of Pollena Aroma, Turpaz's Polish subsidiary.

The acquisition agreement allows Turpaz to obtain 22% equity in Pollena Aroma accompanying the acquisition and includes an option to acquire additional shares in the future, thereby facilitating a more integrated operational approach. This move is expected to open new avenues for Turpaz, particularly in the beverage sector, where the integration of Carotex's expertise and product range can drive growth potential.

Karen Cohen Khazon, Chairperson and CEO of Turpaz, expressed enthusiasm regarding the acquisition, stating, "Welcoming Carotex into the Turpaz family is an exciting development that aligns with our growth strategy. By integrating Carotex's innovative product solutions into our operations, we aim to enhance operational efficiencies and broaden our reach in the European market. We are striving to create added value for both our customers and shareholders."

The founders of Carotex – Lidia, Jan, and Andrzej Tatrzański – acknowledged the potential synergies between the two companies, emphasizing a shared commitment to quality and innovation in the flavors and fragrances sector. They expressed their confidence that the merger would foster growth, enabling them to provide expanded solutions and services to their client base.

Pollena Aroma's CEO, Michal Reiss, also celebrated the acquisition, highlighting it as a significant milestone for Pollena. He emphasized the combined strengths of both companies, which will help enhance innovation and customer service across Europe. This integration aims to transform their combined expertise into comprehensive solutions that cater to the evolving needs of customers.

Financial disclosures from Carotex indicate substantial growth, with revenues soaring to $10.9 million in 2024, up from $9.1 million in the previous year. Adjusted EBITDA and operating profits also saw an uptick, underscoring the company’s viability and potential for sustainable growth within the sector.

Turpaz Industries, which markets its products globally, focuses on high-value-added offerings in the flavors and fragrances domain. Its acquisition of Carotex represents not merely an expansion of its portfolio but also a strategic alignment that promises innovation and superior customer engagement in the competitive landscape of flavors and fragrances.

Overall, Turpaz’s acquisition of Carotex sets a strong foundation for future growth, allowing both companies to leverage their capabilities and enhance their presence in Europe. This strategic merger offers the promise of exciting developments in the flavors and fragrances arena, showcasing how companies can collaborate to foster innovation and growth in a dynamic and evolving market.