Croda International’s fragrances and flavours subsidiary, Iberchem, is acquiring Parfex, a fine fragrance business based in France, for a total enterprise value of €45 million.
Established in 1985 and now employing 75 people, Parfex creates fragrances principally for premium personal care and fine perfumery markets, leveraging the natural raw materials that are available in the region.
The business has seen good growth over the last decade, generating €3.6 million 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. Croda has agreed to acquire 93% of Parfex’s outstanding shares, comprising the founding shareholders and certain minority investors.
Croda, the Yorkshire-based speciality chemicals company, ultimately expects to acquire 100% of the total outstanding share capital, subject to a potential tender offer and subsequent de-listing.
“We believe that transitioning to more natural raw materials is a potential differentiator in the fragrance market,” said Croda CEO Steve Foots.
“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.”
Croda acquired Spanish fragrances and flavours company, Iberchem, in November 2020 for £736 million.
The transaction is subject to customary pre closing conditions and is expected to close by the end of the second quarter of 2021.