PARIS — Eurazeo Capital said Wednesday that it is selling its stake in Iberchem, a Spanish fragrance- and flavors-maker, to Croda International, a U.K.-based specialty chemicals concern.
Under terms of the deal, Iberchem is valued at 820 million euros. That represents 20.5-times the group’s earnings before interests, taxes, depreciation and amortization in 2020.
Founded in Murcia, Spain, in 1985, Iberchem has a focus on natural ingredients. Demand for naturals has been mounting steeply among perfume consumers and brands, as well as in other segments of the beauty industry today.
This disposal will generate for Eurazeo a 2.1-times cash-on-cash multiple and an internal rate of return of 25 percent. The fund said in a statement that proceeds from the sale will come to 565 million euros for Eurazeo, its affiliate and partners, of which 384 million will be for Eurazeo alone.
The transaction should close by the end of this year.
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Eurazeo said over the past three years, Iberchem has significantly bolstered a leading position as a global maker of fragrances and flavors focusing on local and regional brands in high-growth international markets. Iberchem registered organic growth of 15 percent per year in sales over the past decade and honed in on mergers-and-acquisitions, especially in China and Malaysia.
Iberchem has 20 facilities, including eight production plants around the globe. Its commercial reach spans 120 countries, and the group counts 800 employees of 35 different nationalities.
Croda, located in Snaith, England, is quoted on the London Stock Exchange.
Among recent developments in the realm of naturals, Swiss fragrance and flavors supplier Firmenich opened a biotechnology and naturals pilot plant and laboratory in Geneva.
Firmenich and Givaudan, another fragrance- and flavors-maker, have taken minority stakes in Robertet, the largest natural fragrance and flavors producer in the world.
Eurazeo, which is headquartered in Paris and New York, has a diversified portfolio of 18.8 billion euros in assets under management, including 13.3 billion euros from third parties that are invested in more than 430 companies.
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