Samyang Group Acquires Japanese Flavor Company for 390 Billion Won

Samyang Group is expanding its global specialty business by acquiring a Japanese flavor company.

On May 29, Samyang Group announced that its food subsidiary, Samyang Foods, will acquire 100% of the shares of Soda Aromatic, a Japanese flavor and fragrance company, through its Japanese subsidiary.

The acquisition involves the complete stake held by Toray and Mitsui & Co., with a total purchase price of approximately 41 billion yen (about 390 billion won). The two companies plan to complete administrative procedures and business adjustments related to the acquisition by the end of June or early July.

Soda Aromatic, headquartered in Tokyo, is recognized as one of Japan's top five flavor companies. It specializes in flavorings that enhance food taste and aroma, as well as 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 flavors and fragrances. Samyang Group 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' food group, stated, "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 specialty business."

Meanwhile, Kim Yoon, chairman of Samyang Group, emphasized during a New Year event in January the need to accelerate the expansion of high-value specialty business portfolios, including semiconductors, personal care, and eco-friendly materials, as a key management policy for the group.