SPAIN – Flavours and Fragrances company Iberchem Group is on the verge of being sold to Speciality chemicals company Croda International by its current owner Eurozeo for a total cash consideration of €820 million (about US$975 million).
Headquartered in Murcia, Spain, the Iberchem Group operates under two different divisions: Iberchem for fragrances and Scentium for food flavour and has 14 manufacturing facilities and more than 850 employees.
Commenting on Croda’s acquisition of Iberchem Group, Croda CEO Steve Foots said Iberchem stood out among peers with its significant exposure to emerging markets, extensive product portfolio, strong customer focus and R&D capability.
“By bringing our businesses together, we are creating a new, full-service offering to our customers in consumer-care markets and a compelling platform from which to grow the combined business in the years ahead,” Steve Foots added.
Following the acquisition, Iberchem will remain an independent entity while collaborating with Croda teams on cross-selling and other revenue synergy opportunities.
According to Croda, Iberchem will continue to be led by its current management team, with the CEO of the company, Ramon Fernandez, committing to stay to provide continuity and a smooth transition to Croda.
“We are pleased to join the Croda family and therefore strengthen our business offer. Not only are Croda and Iberchem’s activities complementary, but also both companies have grown and expanded their activities on a similar vision and core values,” Ramón Fernández said.
For the past 10 years, Iberchem has been recording a compound annual growth rate of 15%, according to Croda.
Last year, the company generated €174 million (about US$206.34 million) in revenue and Croda forecasts revenues of €187 million (about US$221.76 million) in 2020.
Croda expects the deal to generate synergies leading to annualized cost reductions of €25 million (US$29.65 million) after three years and €48 million (US$56.92 million) after five years.
“We look forward to welcoming our new colleagues to Croda and leveraging our respective networks and expertise,” Steve Foots said.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE