Israeli flavour and fragrance manufacturer Turpaz Industries has acquired a 70 per cent stake in South Africa’s Sensory FX for approximately $10.6mn, expanding its African operations as it seeks to establish an integrated regional platform serving the continent’s food, beverage and consumer goods industries.
The Tel Aviv-listed company said on Monday that the acquisition, completed through its South African subsidiary Sunspray Solutions, marked its first entry into the country’s fragrance market and would strengthen its manufacturing and product development capabilities across Africa.
The transaction values the initial 70 per cent stake at approximately R177.4mn ($10.6mn), with additional payments linked to Sensory’s financial performance between March 2026 and February 2027.
Turpaz financed the acquisition through long-term bank borrowing, with the transaction closing upon signing.
Sensory’s existing shareholders will retain a 30 per cent interest and continue managing the business. The agreement also includes options allowing Turpaz to acquire the remaining shares, or the shareholders to sell them, beginning two or three years after completion, depending on the shareholder.
The price of those remaining shares will be determined by the company’s financial performance and may be settled in cash or Turpaz shares.
Founded in 1999, Sensory develops and manufactures flavours and fragrances for the food and beverage, personal care, household fragrance and consumer products industries.
The company operates a production facility and research and development centre near Johannesburg, employing 75 people, including experienced perfumers and flavour specialists.
Its operations are located close to Turpaz’s existing South African businesses, Sunspray, which specialises in spray-drying solutions for the food and beverage sector, and Nicola-J, a flavour manufacturer.
The acquisition is expected to allow Turpaz to integrate manufacturing, research, procurement and distribution activities across the three businesses, creating opportunities to expand its product portfolio and reach additional African markets.
Karen Cohen Khazon, chief executive of Turpaz Industries, said the transaction represented an important step in the group’s strategy of expanding in emerging markets through acquisitions.
“For the first time, Turpaz is entering the fragrance market in South Africa, and the acquisition provides a foundation for further developing a regional platform for flavors and fragrances across Africa,” she said.
“By combining Sensory’s local development and manufacturing capabilities with Turpaz’s expertise, technologies, broad product portfolio and global presence, we will be able to expand the solutions we offer our customers and pursue further growth opportunities across the continent.”
The acquisition comes as Turpaz continues to expand its international operations through a combination of organic growth and acquisitions.
Since 2017, the company has completed 29 acquisitions worldwide, extending its geographic reach and strengthening its manufacturing and research capabilities.
Sensory reported revenue of $10.9mn for the financial year ended February 28, 2026, an increase of approximately 18 per cent from $9.2mn a year earlier.
Operating profit rose to $2mn from $1.5mn, while earnings before interest, tax, depreciation and amortisation increased to $2.4mn from $1.8mn.
Net profit climbed to $1.7mn from $1.1mn, representing growth of approximately 55 per cent.
The financial figures were drawn from adjusted management accounts prepared under international financial reporting standards, excluding certain non-recurring expenses.
The company’s revenue growth and improved profitability provide Turpaz with an established operating business as it seeks to expand its presence in Africa’s consumer ingredients market.
François Strydom, Sensory’s chief executive and a shareholder, said the partnership would help the South African manufacturer compete more effectively internationally.
“We’ve always believed that South Africa could produce a fragrance and flavour company capable of competing with the very best in the world,” he said.
“This partnership validates that belief and marks an exciting new chapter for SensoryFX.”
Joseph Muhohoma, Sensory’s vice-president of research and development and a shareholder, said joining Turpaz would enable the business to broaden its product offering and enter additional markets.
The acquisition also gives Turpaz access to Sensory’s local fragrance manufacturing expertise and its recently established research centre, which opened approximately a year ago.
Turpaz expects the combination to generate commercial and operational benefits through shared research capabilities, procurement efficiencies and cross-selling opportunities.
The group said its strategy was to combine local production capabilities with international technology and product development expertise, allowing it to respond more quickly to customer requirements across different African markets.
South Africa will serve as a key operating base for the company’s planned regional expansion, although Turpaz did not identify specific additional countries or provide a timetable for further investments.
The transaction adds to Turpaz’s global network of 31 manufacturing facilities, research centres, laboratories and commercial offices.
The company employs more than 1,200 people and supplies thousands of products to more than 5,100 customers in over 100 countries.
Turpaz said the expected benefits of the acquisition, including expansion into new markets and operational efficiencies, remain subject to market conditions and the successful integration of Sensory into its existing operations.
The deal underscores the company’s strategy of using acquisitions to establish local manufacturing capabilities while expanding its footprint in emerging consumer markets.
SUPPORT AFRICAN BUSINESS JOURNALISM
Help XOL Africa expand independent business reporting across Africa.
SUPPORT XOL AFRICA →
