Turpaz acquires Nicola-J, strengthening its position in Africa's flavour sector

Turpaz Industries Ltd. (TASE: TRPZ), an international leader in the development, manufacture, marketing, and sale of flavours, fragrances, and unique raw materials, announced today that it has signed an agreement to acquire 60% of the shares of South African flavour company Nicola-J through its subsidiary Sunspray for a total of USD 6.8 million (ZAR 118.4 million). The purchase is likely to close in the coming months, subject to receiving the necessary regulatory clearances in South Africa. The acquisition will be funded using internal resources. The deal includes a mutual option to purchase the remaining 40% of Nicola-J's shares based on its business success.

Nicola-J was created in 1997 and specialises in the development, production, and marketing of sweet and savoury flavours, colourants, essential oils, and botanical extracts for the food and beverage industries. The corporation is based in South Africa, but also serves consumers in Zimbabwe, Mozambique, Zambia, Botswana, Kenya, and beyond. Its facilities in Johannesburg comprise R&D laboratories, a manufacturing plant, and offices spanning 5,100m, with 2,500 sqm of built-up area, adjacent the Sunspray plant, which specialises in spray drying for the food and beverage industry. The company employs 71 workers.

Nicola-J's founders — Jason Vlantis, a veteran manager with extensive experience in the African flavours industry; Nicky Vlantis, a leading flavorist; and Gary Boast, who developed the company's sales infrastructure — will continue to lead the company in the coming years, as will Dr Karina Rogers, who has recently served as CEO.

Turpaz's expansion of its operations in Africa, specifically South Africa, is a strategic move to strengthen the group's global presence, and it will serve as a managerial and regional platform for continued deeper penetration, consolidation, and expansion of activity in neighbouring countries.

Karen Cohen Chazon, Chairperson and CEO of the Turpaz Group: "We are delighted to welcome Nicola-J to the Turpaz Group. This acquisition is another step in our push into the African flavour market. Nicola-J complements Sunspray's operations in South Africa by bringing a high-quality product portfolio, professional management, and a varied customer base. This acquisition increases professional skills, broadens our client and product portfolio, and improves our African operations."

Jason Vlantis, Nicky Vlantis, Gary Boast, and Dr. Karina Rogers, Nicola-J's founders and managers, stated, "We are happy to join the Turpaz group and embark on a new and promising chapter for Nicola-J. The combination of our decades of local knowledge and experience, as well as Turpaz's global capabilities, will allow us to expand our operations and give more value to our clients. We believe that our agreement with Turpaz will provide a solid foundation for expansion into more African markets, while we continue to engage in the creation of innovative products and strengthening our customer relationships."

Sunspray CEO Rene Cross stated that the merger with Nicola-J provides a major competitive advantage, including local development and manufacturing skills, as well as commercial synergies. This partnership will enable us to provide a broader and higher-quality product offering to our consumers in South Africa and neighbouring countries, while also expanding our footprint in growing markets throughout Africa.

South Africa's flavour industry is witnessing increased demand, thanks in part to a diversified, young, and rising population of nearly 60 million people. The region's strong demographic increase presents enormous opportunities for future expansion.

According to Nicola-J's audited records for the fiscal year ending February 28, 2025, the company generated annual revenues of USD 6.6 million (ZAR 120 million), with a profitability rate comparable to Turpaz's Taste division.

Source: PR Newswire