The Iberchem Group, part of Croda International, has signed an agreement to acquire French fragrance house Parfex.

WHO: Established in Grasse, France, in 1985, Parfex specializes in the creation of fragrances for premium personal care and fine perfumery markets in more than 50 countries worldwide.

Iberchem, headquartered in Murcia, Spain, was founded in 1985 and has approximately 850 employees, 14 manufacturing facilities, 10 R&D centers, and a commercial presence in 120 countries.

Croda is the largest cosmetic-ingredients maker in Europe. Founded in 1925 by an entrepreneur and a chemist, Croda International plc is a holding company based at Snaith, England, that manufactures a diverse range of chemicals and chemical products for the personal care, pharmaceutical, plastics, food processing, nutrition, fire prevention, engineering, and automotive industries.

WHY: Parfex will 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. In addition, the acquisition enhances Iberchem’s presence in the European market while increasing its portfolio of naturally sourced ingredients targeted at premium markets.

IN THEIR OWN WORDS: Steve Foots, Croda Chief Executive Officer, said: “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.”

“This acquisition is a cornerstone in the growth plan of the company,” said Ramón Fernández, CEO of Iberchem Group. “With its history and abundance of natural raw materials, Grasse is a world-renowned French town which is especially relevant for any fragrance house. Parfex will further enhance our portfolio of sustainable and natural fragrances, serving our ambition to rank among the leaders of this industry.”

“With great satisfaction, we become part of Croda and become the premium brand of their dynamic fragrance division Iberchem,” said Kurt Tschopp, General Manager of Parfex. “I am enthusiastic about this deal which offers new horizons to our company and assures its future. Thanks to the numerous synergies between the three companies, we have significant opportunities to accelerate our growth. We’ll focus on our passion to continue to create fragrances with high consumer acceptance, service our customers and reinforce our brand internationally.”

DETAILS:

• Croda International’s fragrances and flavors subsidiary, Iberchem, has agreed to acquire Parfex for a total enterprise value of €45 million.
• Parfex is 82% owned by its founders with the remaining free float of shares listed on the Euronext Access market. Croda has agreed to acquire 93% of Parfex’s outstanding shares, comprising the founding shareholders and certain minority investors. Croda ultimately expects to acquire 100% of the total outstanding share capital, subject to a potential tender offer and subsequent de-listing.
• Parfex has seen steady growth over the last decade, generating €3.6MM EBITDA in 2020.
• Parfex will retain its independent identity within the Iberchem Group, preserving its current structure, but will benefit from both Croda and Iberchem’s technical expertise, financial support, and international sales network.
• Iberchem’s acquisition of Parfex is its first since joining Croda in November 2020.