Turpaz Industries has announced an agreement to acquire control (81%) in Klabin, an American custom fragrance, natural oil blends and extracts company, for a total of $24.3 million, subject to adjustments based on Klabin's business performance during the year 2022.
The company intends to finance the transaction partly from independent sources and partly from bank financing. The purchase agreement includes options to purchase the remaining shares of Klabin (19%) depending on performance, exercisable starting January 2026 for a period of one year.
Recently, Turpaz presented record results for the second quarter of 2022 in which sales grew by 50% to $30.3 million, the adjusted EBITDA increased by 34.7% and amounted to $7 million and the net profit increased by 32.7% and amounted to $4.2 million.
In addition to Klabin, Turpaz, under the management of Karen Cohen Khazon, has completed three acquisitions since the beginning of 2022, including LORI, Balirom and Pentaor.
Karen Cohen Khazon, chairman of Turpaz Industries, stated, "Turpaz continues to implement its integrated growth strategy, which includes organic growth and acquisitions that are synergistic for the group's activities; Turpaz strengthens its activities, its presence and its position as a major player in the field of fragrances in North America by signing an agreement to acquire control of the Klabin company, which is strategic for the company. This purchase will allow For Turpaz to merge its current activity in the field of fragrances in the USA together with Klabin's activity. Turpaz will complete its fourth acquisition since the beginning of 2022 and in total has made seven acquisitions since becoming a public company in May 2021.”
Khazon added, “We are very happy about Klabin joining the Turpaz group and congratulate its employees and managers who are joining the Turpaz family. Saul Klabin's many years of experience and skills in the field of development and marketing of fragrance extracts have led to Klabin's success and we are sure that they will contribute greatly to the continued development of the perfume segment withinin the Turpaz group. Turpaz strengthens its activity, its presence and its position as a major player in the field of fragrances in North America by signing an agreement to acquire control of Klabin, which is strategic for the company. This acquisition will allow Turpaz to merge its current activities in the field of fragrances in the USA together with Klabin activities. Turpaz under my management will continue to implement its integrated growth strategy, which includes organic growth and synergistic acquisitions for our operations made possible thanks to a strong capital structure, low leverage and experienced and strong global management.”
Justin Klabin, VP and operations manager of Klabin, said, "We found a synergistic partner with the Turpaz group. Combining the capabilities and resources of the two companies will lead to maximizing efficiencies and capabilities, while expanding joint growth in the American market. Together we will combine resources to deepen the range of solutions and products for our customers. Our long history with the CEO and managers at the Turpaz Group gave us the confidence to bring this partnership together. We look forward to maximizing our capacity and potential at our New Jersey facility.”