Turpaz Industries Ltd. has announced an agreement to acquire 60% of the issued and paid-up share capital and voting rights of Balirom Ltd., a private company incorporated in Israel, from its shareholders in exchange for the amount of $5.1 million less net debt, according to a company value of $8.5 million. The transaction was completed at the time of signing and was funded from Turpaz's own sources.
The purchase agreement includes an option for the purchase of the balance of Balrom’s shares by Turpaz, which can be exercised from a period of four years after the date of completion of the transaction and for a period of 12 months at a price based on the business operations of Turpaz in the field of sweet flavor extracts in Israel and Balirom activity during the eight calendar quarters that preceded the exercise of the option.
The option will be paid in cash or in exchange for Turpaz shares to be allotted to sellers according to their average price in the 30 calendar days preceding the date of the exercise notice, depending on the sellers' choice on the exercise date. The allotted shares are subject to the receipt of the approvals required by law, including the approval of the TASE for listing on the trading of the allotted shares.
Turpaz’s activities in the sweet flavors segment will be merged with Balirom and will be included in the Turpaz flavor segment. The merging of Turpaz's flavor activities with Balirom will form the basis for operational efficiencies in production and the supply chain.
The acquisition of Balirom enables Turpaz to expand its product portfolio in the areas of sweet and savory extracts, all while leveraging synergies between the group's companies in development, procurement, marketing and sales.
Simultaneously with the completion of the transaction, agreements were signed for the continued employment of Balirom executives who will continue to manage and lead Balirom in the coming years and will join the management team of the Turpaz Group.