Samyang Group Acquires Soda Aromatic

To enhance its global speciality business, Samyang Group will acquire Soda Aromatic, one of Japan's top five flavour and fragrance companies. The Japanese subsidiary of Samyang Corporation will acquire 100% of the shares of Soda Aromatic that are currently held by Toray Industries and Mitsui & Co. This acquisition will be made through this subsidiary. During the period of late June to early July, the two organisations intend to finalise all administrative procedures and business integration activities associated with the acquisition. It is estimated that the acquisition price is approximately JPY 41 billion.

Through this acquisition, Samyang Group expects to minimize the time and risks associated with establishing overseas operations while securing a strategic foothold for expansion across Asian markets, including Japan and China, as well as entry into advanced markets such as North America and Europe. Jisuk Chung, Acting Head of the Food Group at Samyang Corporation, said, “This acquisition will serve as an important milestone in accelerating the Group’s future growth strategy focused on globalization and specialty businesses. By organically combining the technological expertise and business capabilities of both companies, we aim to evolve into a comprehensive food solutions company that delivers differentiated solutions to customers".

Soda Aromatic is one of Japan's top five flavour and fragrance companies, with distinctive technological capabilities in developing flavour solutions for dairy, tea, and coffee applications. Having been established in 1915, Soda Aromatic has established a 111-year business history and currently operates seven production sites in five Asian countries: Japan, China, Taiwan, Thailand, and Singapore. Food, cosmetics, and household products are among the industries that require flavour and fragrance solutions, and the company supplies products to over 1,000 customers worldwide.

Samyang Corporation will broaden its portfolio to include the flavour and fragrance businesses, which are classified as speciality, high-value-added sectors, by expanding beyond its food business structure, which is centred on basic ingredients such as sugar, flour, and starch sweeteners in this acquisition. Thus, the organization intends to transition from a straightforward supplier of food ingredients to a comprehensive solutions provider that can customise taste, texture, and aroma to meet a wide range of customer requirements. Furthermore, Samyang will concentrate on the development of synergies by utilising Soda Aromatic's extensive customer network in conjunction with its key growth businesses, such as dietary fibre solutions and sugar reduction.

Source: Samyang Group