Eurazeo to acquire majority stake in fragrance firm Iberchem for €270m

Global investment firm Eurazeo is set to acquire a 70% stake in Spanish fragrances and flavours producer Iberchem for €270m.

Founded in 1985, Iberchem has operations in more than 100 countries and 11 manufacturing facilities worldwide. The firm’s fragrances division supplies to the hygiene and personal care (HPC) industry, while the Scentium flavours division serves the food and beverages (F&B) sector.

Iberchem's founder and chief executive officer (CEO) Ramon Fernandez said: “We are excited to partner with Eurazeo because of their long-term investment horizon, corporate culture, as well as their ability to help Iberchem strategically, notably on external growth, especially thanks to their offices in China and Brazil.

“Iberchem will be able to continue on its successful path and increase its leadership through organic growth in existing and new markets and selective M&As.”

Eurazeo intends to retain Iberchem’s position as fragrances and flavour ingredients supplier to local and national brands and will support the firm’s management in its next phase of development.

Eurazeo's deputy CEO Virginie Morgon said: “We will leverage our expertise in Iberchem's underlying markets, as well as our international network, to accelerate the growth of the company.”

With sale growth of 18% per annum from 2012-2016, Iberchem serves more than 3,400 customers.