Sweet smell of success with £39m fragrance business acquisition

Speciality chemical business Croda International says its fragrances and flavours subsidiary, Iberchem, has agreed to acquire Parfex SA, a fine fragrance company, for a total enterprise value of €45m/£39m. 

Based in Grasse, France, and established in 1985, Parfex now employs 75 people.

It creates fragrances principally for premium personal care and fine perfumery markets, using the natural raw materials available in the region.

The business has seen good growth over the last decade, generating €3.6m/£3m EBITDA in 2020, and now sells its fragrances in more than 50 countries worldwide.

Parfex is 82% owned by its founders with the remaining free float of shares listed on the Euronext Access market.

East Yorkshire-based 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.

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.”

The transaction is expected to close by the end of the second quarter of 2021.