Croda International Plc, the speciality chemical company that uses smart science to create high performance ingredients and technologies that improve lives, recently announced that it has agreed to acquire the entire issued share capital of Fragrance Spanish Topco, S.L., trading as Iberchem, a leading global fragrances and flavours company, for a total consideration of €820 million (c.£736 million) on a debt-free, cash-free basis. Iberchem has been majority owned by Eurazeo since 2017. The consideration will be funded via a combination of the Group’s existing debt facilities and the proceeds of an equity placing, representing c.8% of Croda’s issued share capital.

The complementary operations of the two companies, combined with an ambitious growth synergy programme, is set to create additional value for customers. Many customers require both ingredients and fragrances and can expect to benefit from collaborative thinking and full formulation development made possible by this acquisition.

Iberchem will remain an independent entity with extensive support from Croda, continuing to serve its customers while collaborating with Croda teams on cross-selling and other revenue synergy opportunities. “We are pleased to join the Croda family and therefore strengthen our business offer,” said Ramón Fernández, CEO of Iberchem. “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. The preservation of the Iberchem identity, the reason why our customers place their trust in us on a daily basis, was of paramount importance for the management team, and we are pleased how understanding Croda has been on this aspect. We are delighted to embark on this exciting new adventure.”

Steve Foots, CEO of Croda observed that “We have known Iberchem Group’s senior team and their business for many years. This fabulous organisation stands out from its peers with its strong exposure to emerging markets, extensive portfolio of F&F products well placed to adapt to sustainability trends, strong R&D capability and its consistent track record of year-on-year growth over the last decade. 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. We look forward to welcoming our new colleagues to Croda and leveraging our respective networks and expertise.”

Iberchem was founded in 1985 and is headquartered in Murcia, Spain. As at August 2020, it had approximately 850 employees, 14 manufacturing facilities, 10 R&D centres and a commercial presence in 120 countries. Approximately 80% of its sales are fragrances for Personal Care and Home Care products, areas where it has a similar customer profile to Croda. A further c.20% of sales are generated by its Scentium flavours business, principally for food, pharmaceutical and oral care applications.