Samyang SPECIALTY INGREDIENTS

Samyang Group Acquires Soda Aromatic, One of Japan’s Top Five Flavor & Fragrance Companies

- Samyang Corporation’s Japan subsidiary to acquire 100% of Soda Aromatic’s shares; transaction value approximately JPY 41 billion

- Core businesses include flavors, fragrances, and aroma chemicals; operates seven manufacturing sites across five Asian countries and serves more than 1,000 customers worldwide

- Marks Samyang Group’s first acquisition of a Japanese company and the first overseas foothold secured through M&A in its food business

■Photo: Samyang Group CI and Soda Aromatic CI

Samyang Group announced on the 29th that it will acquire Soda Aromatic, one of Japan’s top five flavor and fragrance companies, as part of its efforts to further advance its global specialty business.

This acquisition will be carried out through Samyang Corporation’s Japanese subsidiary, which will acquire 100% of the shares of Soda Aromatic currently held by Toray Industries and Mitsui & Co. The two companies plan to complete all administrative procedures and business integration activities related to the acquisition between late June and early July. The acquisition price is approximately JPY 41 billion (approximately KRW 390 billion).

Soda Aromatic is a Japan-based flavor and fragrance company headquartered in Tokyo. Its core businesses include flavors, which create taste and aroma profiles for food products; fragrances, used in perfumes and cosmetics; and aroma chemicals, including lactones, which serve as key raw materials for both flavor and fragrance applications. In particular, the company possesses differentiated technological capabilities in flavor solutions for dairy, tea, and coffee applications and is recognized as one of Japan’s top five flavor and fragrance companies.

Founded in 1915, Soda Aromatic has built a 111-year business history and operates seven production sites across five Asian countries—Japan, China, Taiwan, Thailand, and Singapore. The company supplies products to more than 1,000 customers worldwide across industries requiring flavor and fragrance solutions, including food, cosmetics, and household products.

Through this acquisition, Samyang Corporation will expand beyond its food business structure centered on basic ingredients such as sugar, flour, and starch sweeteners, broadening its portfolio into the flavor and fragrance businesses, which are classified as specialty, high-value-added sectors. By doing so, the company plans to evolve beyond a simple food ingredient supplier into a total solutions provider capable of designing taste, texture, and aroma to meet diverse customer needs. In addition, Samyang intends to focus on creating synergies by leveraging Soda Aromatic’s extensive customer network in conjunction with its key growth businesses, including sugar reduction and dietary fiber solutions.

Furthermore, this acquisition is significant as it represents Samyang Group’s first acquisition of a Japanese company and the first case in which its food business has secured an overseas operating base through M&A. According to data from M&A intelligence provider Mergermarket, Korean companies completed more than 13,000 global investment transactions over the past decade, yet fewer than 100 involved investments in Japanese companies, accounting for less than 1% of the total. Considering the characteristics of Japan’s M&A market, which is heavily domestic-oriented and presents relatively high barriers to foreign capital, acquisitions of Japanese companies by Korean corporations are regarded as rare transactions.

Through this acquisition, Samyang Group expects to minimize the time and risks associated with establishing overseas operations while securing a strategic foothold for expansion across Asian markets, including Japan and China, as well as entry into advanced markets such as North America and Europe. Jisuk Chung, Acting Head of the Food Group at Samyang Corporation, said, “This acquisition will serve as an important milestone in accelerating the Group’s future growth strategy focused on globalization and specialty businesses. By organically combining the technological expertise and business capabilities of both companies, we aim to evolve into a comprehensive food solutions company that delivers differentiated solutions to customers. We will continue to actively explore additional investment and growth opportunities to expand our global specialty business portfolio.”

Meanwhile, in line with the Purpose framework announced during its centennial year, Samyang Group has been advancing its global specialty business portfolio. In 2023, the Group acquired Verdant, a specialty chemicals company with manufacturing facilities in the United States, the United Kingdom, and Germany and a customer base that includes global companies such as Unilever and L’Oréal. Last year, Samyang also acquired Lubrizol Elmendorf, including manufacturing and research & development facilities previously owned by global specialty chemicals company Lubrizol, continuing to expand the proportion of specialty businesses within its global portfolio.