08:42 AM | April 7, 2021 | Sotirios Frantzanas
Croda International says that its subsidiary Iberchem Group (Murcia, Spain), active in flavors and fragrances, has agreed to acquire Parfex (Grasse, France), a fine fragrance company, for a total enterprise value of €45.0 million ($53.4 million). Croda will acquire 93% of Parfex’s outstanding shares, comprising 82% owned by the founding shareholders and 11% owned by certain minority investors, the company says. Croda ultimately expects to own 100% of the total outstanding share capital, subject to a potential tender offer and subsequent delisting, it says. The transaction is subject to customary pre-closing conditions and expected to close by the end of the second quarter of 2021, according to Croda.
Parfex will retain its independent identity within Iberchem, once the acquisition is completed, and will preserve its current structure, Croda says. Parfex creates fragrances principally for premium personal care and fine perfumery markets, leveraging the natural raw materials available in the region where it is located, Croda says. The company generated EBITDA of €3.6 million in 2020, has a workforce of 75, and now sells its fragrances in more than 50 countries worldwide, Croda says.
This is the first acquisition by Iberchem since it was acquired by Croda in November 2020 and it is expected to play an important role in Iberchem’s plan to increase its offering of sustainable and natural certified fragrances while hosting a new creative center for the group’s fine fragrance activities, Iberchem says. It will also enhance Iberchem’s presence in the European market and increase its portfolio of naturally sourced ingredients targeted at premium markets, Iberchem adds.
“We believe that transitioning to more natural raw materials is a potential differentiator in the fragrance market. Parfex will play an important role in Iberchem’s plans to increase its sustainable fragrance offerings and further enhances our position in the creation of higher-value fine fragrances,” says Steve Foots, CEO of Croda.