Eurazeo, one of the first investment companies listed in Europe, announces the acquisition, for an enterprise value of € 405 million, of Iberchem, a global producer of fragrances and flavours for the local brands and regional efforts in emerging markets. By investing approximately eur 270 million, Eurazeo will become the majority shareholder (about 70 % of the capital), alongside the management. The transaction will be finalized in July.
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Located in Murcia, in Spain, and present in more than 100 countries, Iberchem has developed a business model unique and particularly flexible, based on sound local commercial teams and 11 production sites across the world, including Spain, China, Indonesia, Colombia and Tunisia. Iberchem meets the needs of the sector of beauty products and maintenance through its fragrance division and the sector of food products and beverages through its division flavourings, Scentium. The company has a customer base that is very diverse, composed of more than 3,400 clients, including a large number of consumer brands, primarily local and regional. This positioning allows it to benefit from the growth of the world population and the rise of the middle classes in emerging markets and thus to record strong organic growth.
Since its creation in 1985, by Ramon Fernandez, the current President, Iberchem displays a double-digit organic growth, strong and unbroken. From 2012 to 2016, the turnover has been growing 18% a year on average. At the end of may 2017, the company realizes an annual turnover of 117 million euros, an EBITDA of approximately € 25 million and an EBITA of approximately € 23 million.
Eurazeo will accompany the management team of Iberchem in the next stage of development of the society while preserving its DNA is unique as a leading provider of fragrances and flavors with a good proposal quality / price for local brands in emerging markets.
Virginie Morgon, Executive Director of Eurazeo, said : We are delighted to be supporting Iberchem, a company that fulfils all our investment criteria : an experienced management team and organic growth superior to the average thanks to an operational model is flexible and is based on the sector resilient food and cosmetics, as well as on the development of the middle classes in the emerging countries. Thanks to our expertise of markets the underlying of Iberchem, and thanks to our international network, we want to help the company accelerate its growth. We are determined to support Ramon Fernandez and his team into the next chapter of the history of this growing business. ”
Ramon Fernandez, President and founder of Iberchem, added :
We are very pleased to partner with Eurazeo due to his investment horizon long-term and its corporate culture, but also because they are able to help Iberchem on a strategic plan, in particular in the field of external growth, and this by relying more particularly on their offices, chinese and brazilian. Eurazeo also has the know-how necessary to help us to strengthen our talent pool, which will ensure the growth of the company in the future. Iberchem will be able to continue on the path of success and assert its leadership by organic growth in its existing markets and new acquisitions, well-chosen.
About Eurazeo
> Eurazeo is one of the first investment companies listed in Europe, with approximately € 6 billion in diversified assets under management, of which one billion for the account of third parties. Its mission is to detect, accelerate and enhance the potential of transformation of the companies in which it invests. Eurazeo is present on the different segments of the capital investment through its five divisions – Eurazeo Capital, Eurazeo Growth Eurazeo PME, Eurazeo Heritage and Eurazeo Brands. Its institutional shareholders and family, its solid financial structure without debt structural and investment horizon flexible allows us to support companies in the long term. In particular, it is the shareholder of AccorHotels, ANF Immobilier, Asmodee, ATTC, CPK, Desigual, Dominion Web Solutions, Elis, Europcar, Fintrax, Grape Hospitality, Les Petits Chaperons Rouges, Moncler, Neovia, Novacap, Top Education, and also to SMES as a Péters Surgical and Flash Europe International, and start-ups such as Farfetch and Vestiaire Collective.
> Eurazeo is listed on the Euronext Paris.
> ISIN : FR0000121121 – Bloomberg : RF FP – Reuters : EURA.PA
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