Turpaz Industries Ltd., an Israel-listed flavor and fragrance manufacturer, has acquired a 70% majority stake in South Africa’s Sensory FX Proprietary Limited for $10.6 million (approximately R 177.4 million), marking its entry into the country’s fragrance market and strengthening its expansion strategy across Africa.

The transaction, executed through Turpaz’s South African subsidiary, Sunspray Solutions Proprietary Limited, was completed upon signing. The acquisition was financed entirely through long-term bank debt facilities and includes additional variable earn-out consideration linked to Sensory FX’s financial performance between March 1, 2026, and February 28, 2027.

Turpaz expands African flavors and fragrance operations

Sensory FX’s founding shareholders will retain a 30% interest and continue overseeing executive management and operations. The agreement also provides mutual put and call options over the remaining stake, exercisable two to three years after closing. The valuation will be determined by the company’s underlying business performance, with payment available in cash or Turpaz equity at the selling shareholders’ election.

Turpaz Chief Executive Officer Karen Cohen Khazon said the acquisition advances the group’s growth strategy by expanding its presence in emerging markets and creating opportunities to leverage synergies across its operations. She described the transaction as an important step into South Africa’s fragrance market, adding that Sensory FX’s local capabilities would complement Turpaz’s expertise, technologies and global reach.

Sensory FX Chief Executive Officer and shareholder François Strydom said the partnership marked a new chapter for the company, while Vice President of Research and Development Joseph Muhohoma said joining Turpaz would help broaden its customer solutions, enter new markets and capture additional growth opportunities across the continent.

Sensory FX records stronger financial performance

Sensory FX reported revenue of $10.9 million for the financial year ended February 28, 2026, an 18% increase from $9.2 million in the previous year, according to adjusted IFRS management accounts.

Gross profit rose to $5.7 million from $4.7 million, while operating profit increased to $2 million from $1.5 million. Normalised EBITDA climbed to $2.4 million, compared with $1.8 million in fiscal 2025, while net profit advanced to $1.7 million from $1.1 million.

The results reflect growth across the business and provide the financial foundation for Turpaz’s investment as it seeks to expand its presence in the South African and wider African markets.

Turpaz leadership outlines regional growth ambitions

Founded in 1999, Sensory FX develops and manufactures flavors and fragrances. It operates a leased production facility and a research and development centre opened in 2025 in the Johannesburg metropolitan area. The business employs 75 people across its flavor and perfumery divisions.

The acquisition represents Turpaz’s first entry into South Africa’s fragrance market, complementing its existing local operations through Sunspray, which provides spray-drying solutions, and Nicola-J, its flavors business.

The company is positioning the investment as the foundation for a broader regional platform covering flavors and fragrances across Africa. By combining Sensory FX’s local manufacturing and product-development capabilities with Turpaz’s technologies, product portfolio and international presence, the group aims to expand its customer offering and pursue opportunities in additional African markets.