Eurazeo buys Magnum's Iberchem for €405m

The deal saw the French GP acquire a 70% stake in the business for €270m, while Magnum reportedly sold its 73% holding. Following the deal, the company's management team will retain the remaining minority stake in the company.

Eurazeo deployed capital through its Eurazeo Capital investment division, according to a source familiar with the situation. Additionally, the GP issued a senior debt package to support the transaction.

Iberchem's private equity funding history started in 1999 when Espiga Capital acquired a 78% stake in the business for €5m from the company's founding partners. In 2002, Espiga reinvested in the business alongside Baring Private Equity Partners, which deployed capital from its InverMurcia vehicle, to support the opening of a factory in Murcia and the acquisition of a Chinese plant. The two GPs led an additional €1.5m capital increase, with Espiga injecting €1.1m, in 2005.

In 2008, Capital Alianza acquired an 87.1% stake in Iberchem as part of an MBO valuing the business at €35m. The transaction saw Espiga and Baring Private Equity exit the firm, with the former enjoying an IRR of around 20% and a money multiple in excess of 3x.

Then, Magnum acquired a 73% stake from Alianza in June 2013. The deal valued Iberchem at €80m, equating to 8x EBITDA, unquote" understands.

Company
Headquartered in Murcia, Iberchem manufactures fragrances for the hygiene and personal care industry and flavourings for food and beverage producers. The company was established in 1985 and currently has 11 manufacturing plants in Spain, China, Indonesia, Colombia and Tunisia. It exports across 100 countries and in 2016 it generated 84% of its sales across emerging markets. Iberchem has 550 employees worldwide.

According to a statement, the company posted an 18% sales compount annual growth rate between 2012-2016. As of May 2017, the business posted €117m in yearly revenues with a €25m EBITDA.

People
Eurazeo – Wilfried Piskula (managing director); Louis Prothery (associate director); Amandine Ayrem (principal); Amina Lamloum (associate).
Iberchem – Ramon Fernandez (CEO).

Advisers
Equity – BNP Paribas (M&A); Montalban (corporate finance); Uría Menéndez (legal, tax); Willkie Farr & Gallagher (debt advisory); Deloitte (financial due diligence); Rambol (ESG due diligence); Marsh (insurance due diligence).
Company – PJT Partners (M&A).

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• Southern Europe
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• Eurazeo
• Magnum Capital Industrial Partners