Flavours and Essences UK acquired by Turpaz Industries

Turpaz Industries acquired the entire share capital of Flavours and Essences UK from International Flavors & Fragrances on 1 September 2024, through a wholly owned subsidiary, for £10–30M, an EV/EBITDA multiple of below 5x. Signature and completion occurred the same day, funded by short-term bank borrowing. Established in 1998, the company formulates and produces flavour compounds from a site at Blackburn in Lancashire, where development, applications, manufacturing and sales are gathered, with a further sales office in Belgium covering markets outside Britain. Its applications span vaping liquids, bakery, beverages and other foods, and its customers are concentrated in the United Kingdom with additional sales across Europe and Asia. It employs 50 people and recorded revenue of £15.6m and an EBITDA of £5.4m for 2023. The price reflected a declining top line. Revenue fell from 18.5 million pounds in 2022 to 15.6 million in 2023, and the first half of 2024 produced 6.6 million, a pace that would leave the full year lower again. Margins held through that decline, with operating profit steady at 5.4 million pounds across both years, which is what made the business attractive at the multiple paid. Vaping explains much of the volatility. Flavoured e-liquids have faced successive restrictions across European markets, and a supplier concentrated in that category carries regulatory risk that a conventional food flavour house does not. For Turpaz, the purchase opened a British market where it had no operations, with a site and a management team to build on. It was the group’s eleventh acquisition since listing. Bird & Bird advised on the transaction.

The acquisition of Flavours and Essences UK is part of the growth strategy of Turpaz Industries, which already has several external growth operations under its belt, notably Clarys & Willich in 2024.