• Erich Ziegler and Florida Chemical , respectively German and US manufacturers of natural citrus flavour ingredients for the food and beverage industry , by Archer Daniels Midland of the US
• Creative Flavors & Fragrances , an Italian fragrance maker , by India ’ s SH Kelkar
• Fragrance Design , a US fragrance maker , by Spain ’ s Eurofragance Major chemical distributors have also been active in the field . For instance , Univar has acquired Earthoil Plantations , a UK supplier of organic and pure cold pressed and essential vegetable seed oils for cosmetics and personal care , while Azelis bought Euroconsultant , a Polish distributor of flavours and preservatives for the food industry , and MK Ingredients , an Indian distributor of food ingredients . In smaller deals by chemical distributors , Caldic of the Netherlands bought Arles Agroalimentaire , a French distributor of emulsifiers , functional additives and proteins ; and Spain ’ s Indukern bought Diffusions Aromatiques , a French distributor of natural , organic and synthetic ingredients for aromatherapy products , cosmetics and fragrances .
Other recent major acquisitions in the sector include :
• McCormick & Company , the USbased manufacturer of spices , seasonings , and speciality foods and flavours , acquiring FONA International , a US-based producer of flavours for food , beverage , and nutritional companies , for around £ 500 million in December 2020
• T Hasegawa , the Japan-based manufacturer of F & F acquired Mission Flavors & Fragrances , a US-based manufacturer of F & F products for approximately £ 100 million , also in December 2020
• Croda International , the UK-based manufacturer of speciality and industrial chemicals , acquiring Iberchem , a Spanish manufacturer of F & F for the household , personal care , perfumery and food sectors for about £ 750 million in November 2020 .
Private equity
Private equity ( PE ) investors are highly attracted to the FF & I sector because of the strong performance of players in the sector , the attractive end market dynamics and the opportunity to create differentiated product offerings . They also appreciate the defensible market position of these companies , as well as the fact that their added-value products are associated with strong levels of cash conversion . PE firms regularly establish new platform investments in the sector , which are often the subject of ongoing buy-and-build strategies . Thanks to the increasing firepower of the
PE market , investors can look at bringing together multiple players in the sector to create an enlarged entity , which in time will itself be an attractive acquisition target for the large global groups . Azelis changed hands in June 2018 , being acquired by EQT Partners of Sweden . Other significant acquisitions of recent years in the field by PE includes those of :
• Italcanditi , an Italian FF & I manufacturer ( which had itself acquired Prodotti Rubicone , active in the same fields ) by Investindustrial . Italcanditi subsequently acquired Comprital Group , a producer of ice creams , pastes , glazes and grains in a transaction advised by Clearwater International .
• Iberchem , a Spanish manufacturer of fragrances ( which had previously bought South African colorants and food fragrances maker Versachem ) by Eurazeo
• AromataGroup , an Italian maker of natural colourants and flavours for the food and beverage , and pharmaceutical industries , which previously bought French firm Nactis Flavours , by Ambienta
• Frulact , a Portuguese maker of fruitbased ingredients by Ardian
• Florida Food Products , which makes curing agents , ingredients and preservatives for the cosmetics , food , nutraceutical and pharmaceutical industries by MidOcean Partners
• Groupe Unipex , a French manufacturer of active ingredients for the cosmetics , nutrition and pharmaceutical industries , by BNP Paribas Developpement . •
Michael Loudon
PARTNER , CLEARWATER INTERNATIONAL
CLEARWATER INTERNATIONAL k + 44 845 052 0354 J michael . loudon @ cwicf . com j www . clearwaterinternational . com
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