Food Base, a Hungarian manufacturer specializing in flavors, vinegar powders, essential oils, and herbal extracts, has entered into an agreement with Turpaz Industries. According to the agreement, Turpaz Industries will acquire a majority stake of 60% in Food Base.
Upon completion of the transaction, the acquisition of Food Base by Turpaz Industries will involve a total consideration of $9.5 million. It is important to note that 60% of Food Base’s net debt will be subtracted from the transaction value.
As part of the agreement, Turpaz retains a call option to acquire the remaining shares of Food Base, which can be exercised three years after the completion of the transaction.
Established in 2004, Food Base provides a wide range of flavors and plant extracts specifically catering to the European market.
With a workforce of 55 employees, Food Base operates an R&D center, a robust marketing and sales system, and owns a state-of-the-art production facility in Budapest. The factory is equipped with a high production capacity and has the potential for future expansion, ensuring modern and efficient operations.
The acquisition of Food Base is anticipated to bring about a substantial expansion of Turpaz’s customer base and sales volume. Moreover, it will enable Turpaz to broaden its product portfolio, deepen its involvement, and enhance its market share in emerging markets. Turpaz intends to leverage Food Base’s development, production, and sales capabilities to foster business growth in the region.
Karen Cohen Khazon, CEO of Turpaz, said, “This acquisition continues the implementation of the global growth strategy of the Turpaz Group, and strengthens our presence and our market share in emerging markets while continuing to strengthen Turpaz’s position as a leading global player.”
She continued, “The capabilities of Food Base and its many years of experience in the field of flavours for the food and beverage industry will be a strategic asset for Turpaz. We expect that sales in the markets where Food Base is active will continue to grow in the coming years as a result of changes in consumer preferences and the continued transition to the purchase of convenience food and health beverages as well as, as a result of the synergy of customers, products and technologies between the group companies.”
Tamás Győrfi, the CEO of Food Base, along with all the company’s employees, have officially become part of Turpaz following the acquisition.
Győrfi commented, “The partnership between us will allow Food Base to grow based on the combined expertise, knowledge and geographic distribution of both companies and provide the best value to our customers in the markets in which we operate”.
The transaction will be funded through bank loans, and its finalisation is anticipated in the upcoming months, pending regulatory approvals in Hungary.
