Eurazeo, a leading global investment company listed in Paris, is pleased to announce the acquisition of Iberchem, a global producer of fragrances and flavors addressing national and regional brands in emerging markets, for an enterprise value of €405 million. Eurazeo will invest c. €270 million to become the majority shareholder (c. 70%) alongside the existing management team. The transaction will close later in July.
Headquartered in Murcia (Spain) and selling in more than 100 countries, Iberchem has a unique and particularly fast-to-customer business model, with strong local sales & development teams and 11 manufacturing facilities across the world including in Spain, China, Indonesia, Colombia and Tunisia. Iberchem serves the Hygiene and Personal Care (“HPC”) industry through its fragrances division and the Food and Beverages (“F&B”) industry through its flavors division, Scentium. Thanks to a very diversified customer base of more than 3,400 customers, mainly leading local and regional consumer brands, Iberchem benefits from the growth of the world’s population as well as the rise of the middle class in emerging market countries to drive its superior organic growth.
Since its creation in 1985 by Ramon Fernandez, its current CEO, Iberchem has enjoyed a solid and uninterrupted double-digit organic growth. From 2012 to 2016, sales grew by 18% per annum. As of May 2017, the company generated LTM sales of 117m€, c. 25m€ of EBITDA and c. 23m€ of EBITA.
Eurazeo will support Iberchem’s management team in the next phase of the development of the company while preserving its unique DNA as the leading supplier of value for money fragrances and flavors ingredients for local brands in the emerging markets.