Flavor and fragrance manufacturer Turpaz has announced the acquisition of Belgian company Doucy for $8.5 million, with an additional contingent payment based on the acquired company’s EBITDA performance through March 2027.

According to the announcement, Doucy generated approximately $5 million in revenue in 2024, with profitability levels in line with Turpaz’s flavor division. Founded in 1968, Doucy specializes in developing, manufacturing, and marketing sweet flavors for the food and dietary supplement industries, primarily serving the local market, including the Netherlands and Luxembourg. The company operates a production facility and development lab covering a total area of 5,600 square meters, with 2,644 square meters of built-up space, all of which were included in the deal.

Strengthening Global Growth Strategy

Karen Cohen Hazon, Chairwoman and CEO of Turpaz Industries, emphasized the strategic importance of the acquisition:
"Acquiring Doucy marks another milestone in Turpaz’s global growth strategy. The synergy between Doucy’s expertise in sweet flavors and our existing savory capabilities in Belgium will enable us to offer a broader and more comprehensive product portfolio to our customers. This acquisition strengthens our position in the global flavor market. I welcome Doucy’s management team to Turpaz, as they will continue leading the company in the coming years, ensuring business continuity and unlocking growth potential through synergies between our companies.”

Doucy’s CEO, Guy Fermans, also highlighted the benefits of joining Turpaz: "Becoming part of the Turpaz Group is a significant step for us. Turpaz’s advanced technology, impressive and unique product portfolio in Europe, and overall capabilities create a substantial opportunity for Doucy to expand its operations, enhance technological capabilities, diversify its product range, and strengthen its presence in the Benelux market.”

Growth Through Acquisitions

Turpaz has consistently pursued a growth strategy centered on acquisitions rather than solely relying on organic expansion. While the company has demonstrated steady revenue growth in its financial reports, an analysis of pro forma figures (which account for acquisitions) suggests that its organic growth rate has been significantly lower.

In an interview a few months ago, CEO Karen Cohen Hazon explained the rationale behind this approach: "The beauty of this strategy is that we balance organic growth with expansion through mergers and acquisitions. Some years, organic growth may be weaker, while in other years, acquisitions may slow down. If you compare Turpaz today to its 2021 version, just after the IPO, it's a completely different company. We are recognized globally for both our organic expansion and our acquisitions. Executing 4-5 acquisitions a year and integrating them successfully—especially in a world facing crises like war, COVID, and more—is no small feat.”

When asked whether Turpaz intends to maintain its current acquisition pace in 2025, she responded: "We always aim to improve both organic growth and acquisitions. Just last week, we turned down two potential deals because I didn’t think they were right for our investors. It might have made headlines, but it wasn’t the right move for the company. We are building Turpaz to be a top-10 global player in the flavor and fragrance industry, and we are taking this seriously. I won’t approve an acquisition unless it truly adds value and contributes to growth. It may sound simple, but knowing when to say no to a deal is just as important.”

Turpaz’s stock has surged approximately 30% since the beginning of the year, extending its rally to around 84% year-to-date. As of this morning, the company is trading at a market capitalization of approximately 2.55 billion shekels.