Eurazeo Capital is to sell its stake in Iberchem, its Fragrances and Flavours portfolio company based in Murcia (Spain), to Croda, a UK Specialty Chemicals company listed on the London Stock Exchange.
Eurazeo Capital is to sell its stake in Iberchem, its Fragrances and Flavours portfolio company based in Murcia (Spain), to Croda, a UK Specialty Chemicals company listed on the London Stock Exchange. The transaction, which is expected to be completed by end of 2020, remains subject to customary closing conditions.
Under this agreement, Iberchem is valued EUR820 million representing 20.5x 2020 EBITDA. This disposal will generate for Eurazeo Capital a Cash-on-Cash multiple of 2.1x and an Internal Rate of Return (IRR) of c25 per cent. Proceeds will amount to EUR565 million for Eurazeo Capital, its affiliates and partners (EUR384 million for Eurazeo only).
Over the last three years, Iberchem has significantly reinforced its position as a leading global producer of fragrances and flavours focusing on local and regional brands in high-growth international markets. Thanks to its strategic positioning, the company combined a best-in-class organic growth of +15 per cent per year sales over the last 10 years and targeted M&A, with the support of Eurazeo network, notably in China and Malaysia.
Iberchem exemplifies Eurazeo Capital’s strategy to select and support the development of high potential businesses operating in attractive markets fuelled by strong fundamentals and ultimately identify the most strategic buyers for its companies.
Marc Frappier, Managing Partner, Head of Eurazeo Capital, says: We would like to thank the management team and employees of Iberchem, led by Ramon Fernandez, CEO and founder, for our fantastic partnership over the last 3 years. We were delighted to help them further accelerate their global growth story. We wish them all the success they deserve in the next phase of their journey with the support of Croda, the perfect partner for Iberchem’s future development.
The transaction, which is expected to be completed by end of 2020, remains subject to customary closing conditions.
Under this agreement, Iberchem is valued EUR820 million representing 20.5x 2020 EBITDA. This disposal will generate for Eurazeo Capital a Cash-on-Cash multiple of 2.1x and an Internal Rate of Return (IRR) of c25 per cent. Proceeds will amount to EUR565 million for Eurazeo Capital, its affiliates and partners (EUR384 million for Eurazeo only).
Over the last three years, Iberchem has significantly reinforced its position as a leading global producer of fragrances and flavours focusing on local and regional brands in high-growth international markets. Thanks to its strategic positioning, the company combined a best-in-class organic growth of +15 per cent per year sales over the last 10 years and targeted M&A, with the support of Eurazeo network, notably in China and Malaysia.
Iberchem exemplifies Eurazeo Capital’s strategy to select and support the development of high potential businesses operating in attractive markets fuelled by strong fundamentals and ultimately identify the most strategic buyers for its companies.
Marc Frappier, Managing Partner, Head of Eurazeo Capital, says: We would like to thank the management team and employees of Iberchem, led by Ramon Fernandez, CEO and founder, for our fantastic partnership over the last 3 years. We were delighted to help them further accelerate their global growth story. We wish them all the success they deserve in the next phase of their journey with the support of Croda, the perfect partner for Iberchem’s future development.
