Israel-based flavours and fine ingredients producer Frutarom has acquired a 51% stake in Turpaz Perfume and Flavor Extracts (Turpaz) for an overall cash-free debt-free company value of NIS53.7m ($15.1m).

The consideration paid by Frutarom for the shares is NIS14.5m ($4.1m). Frutarom also invested approximately NIS27m ($7.6m) into the company.

The deal also comprises an option for the acquisition of the remaining balance of Turpaz shares starting four years from the date of closure of the transaction. This will be priced according to Turpaz’s business performance during the two years leading up to the date of notification on exercising the option.

“Frutarom’s strong management is now solid enough and well enough established to develop this additional area of activity."

For the 12 months ending in June 2017,  Turpaz had a sales turnover of NIS23.3m ($6.2m).

Established in 1970, Turpaz is engaged is in development, production and marketing of fragrance solutions. It has an R&D facility, manufacturing and marketing site in Israel and recently opened a centre for R&D, production, sales and marketing in New Jersey, US.

Trupaz will join Frutarom’s existing fragrances businesses in India, Africa and Latin America.

Frutarom Group president and CEO Ori Yehudai said: "The acquisition of Turpaz is an important step towards the implementation of Frutarom’s strategy to develop global business in fragrances.

“The field of fragrances is synergetic and complementary to the field of flavours in terms of, among other things, raw materials and production processes, and many players in Frutarom’s fields of activity engage in both flavours and fragrance activities together.

“Frutarom’s strong management is now solid enough and well enough established to develop this additional area of activity."