Korean speciality ingredient maker Samyang is to acquire Japanese flavour and fragrance company Soda Aromatics for around ¥41 billion ($257m).
Japanese owners Toray and Mitsui, which have a 66% and 34% shareholding respectively, are expected to complete the sale to Samyang Group subsidiary Samyang Foods by 31 March 2027.
Soda Aromatic, headquartered in Tokyo, makes fragrance ingredients used in perfumes and cosmetics, including key aroma chemicals like lactones.
The company operates seven production facilities across five Asian countries: Japan, China, Taiwan, Thailand, and Singapore, supplying products to over 1,000 clients.
With this acquisition, Samyang Foods aims to transition from a business model focused on basic materials like sugar, flour, and starch to high-value sectors such as flavours and fragrances.
Samyang plans to reduce the time and risks associated with establishing overseas operations while securing a foundation for expanding into Asian markets like Japan and China, as well as entering advanced markets in North America and Europe.
Jung Ji-seok, acting head of Samyang Foods, said: "We will organically combine the technological capabilities and business strengths of both companies to propose differentiated solutions to our customers as a comprehensive food solutions provider.
“We will also actively seek additional investments and growth opportunities to expand our global speciality business."
