Deal secures 100% stake for 390 billion won, extending group's reach into specialty business
Samyang Group is acquiring Soda Aromatic, one of Japan's five largest fragrance companies, to accelerate its global specialty business expansion.
Samyang Corp.'s Japanese subsidiary will purchase a 100% stake in Soda Aromatic from Toray and Mitsui & Co. for 41 billion yen (390 billion won, approximately $258 million), the company said Tuesday. All administrative procedures and operational adjustments are to be completed by early July.
Founded in 1915 and headquartered in Tokyo, Soda Aromatic specializes in fragrances and aroma chemicals. Its core businesses cover flavor compounds that recreate the taste and aroma of food, fragrance materials used in perfumes and cosmetics, and aroma chemicals including lactones — a key raw ingredient in both flavor and fragrance production.
The company operates seven production facilities across five Asian countries — Japan, China, Taiwan, Thailand and Singapore — and supplies products to more than 1,000 customers worldwide in the food, cosmetics and lifestyle goods sectors.
Through the acquisition, Samyang Corp. aims to move beyond its traditional food business centered on basic ingredients such as sugar, flour and starch sweeteners, expanding into the higher-value specialty segment of flavors and fragrances. The company plans to grow into a total solutions provider capable of designing taste, texture and aroma for its customers.
Samyang also intends to link Soda Aromatic's customer network with its own sugar-reduction and dietary fiber businesses to generate synergies. The deal gives the group a strategic foothold for expanding in Asian markets such as Japan and China, as well as entering advanced markets in North America and Europe.
"This acquisition will serve as an important catalyst for accelerating the group's future growth strategy centered on globalization and specialty businesses," said Jeong Ji-seok, acting head of Samyang Corp.'s food group. "We will leap forward as a comprehensive food solutions company that offers differentiated solutions to our customers."
spa@heraldcorp.com
