Montagu launches Arkopharma sale; attracts PE and trade buyers

Rachel Lewis , Maryna Irkliyenko , Francesca Veronesi , Barbara Pianese and Myriam Mariotte
23 May 2022

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Sponsor Montagu has launched the Rothschild-led sale of its French natural medicines and food supplements maker Arkopharma, with IMs distributed in the past week, four sources familiar with the matter said.

The asset is being marketed off EUR 45m EBITDA, said two of the sources, and is expected to fetch a mid-teen EV/EBITDA multiple, one of the sources and two further sources familiar said.

Arkopharma records EUR 200m in sales, said one of the sources.

The business has attracted appetite from several sponsors, including Bridgepoint and CVC's portfolio company Cooper, said two of the sources. Ardian is also among the expected bidders, added one of the sources.

Bidders are nervous about CVC's Cooper participating in the auction, said one of the sources.

The sale of Arkopharma follows the footsteps of its peer Havea, which also recently came to the market with non-binding bids due on 8 June, as reported. BC Partners, Cinven, and a consortium of Apax France and Wendel are among the main parties looking at Havea, as reported.

Arkopharma had trading wobbles during 2018-2019 but has since bounced back to record strong results in 2021, said three of the sources.

The company is a pure player in the supplements space, said one of the sources, while Havea manufactures, designs and distributes a wide range of products, including food supplements and personal care products for babies and women.

Montagu acquired Arkopharma in 2014 for an enterprise value of EUR 300m, as reported.

In 2016, the business acquired a Portuguese distributor DISTRIFA, as per the company's website.

Arkopharma, founded in 1980, is a medication and nutritional plant-based supplements specialist. It is present in 50 countries and operates seven subsidiaries. Products are sold mainly to pharmacists and health and wellness retail stores.

Montagu, Rothschild and CVC declined to comment. Cooper, Ardian, Bridgepoint, and Arkopharma did not respond to a request for comment.