French investment group Eurazeo has paid around €270 million to gain a 70% stake in Spanish flavors and fragrances company Iberchem. The deal, which represents an enterprise value of €405 million, is set to close later in July.

Headquartered in Murcia, Iberchem sells in more than 100 countries and operates 11 manufacturing facilities worldwide, including in Spain, China, Indonesia, Colombia and Tunisia. The company serves the hygiene and personal care industry through its fragrances division and the food and beverage industry through its flavors business, Scentium.

With the investment, Eurazeo said it will support Iberchem’s management team in the next phase of the company’s development. Iberchem has seen double-digit organic growth since its creation in 1985 by current CEO, Ramon Fernandez, and annual sales have grown by 18% from 2012 to 2016. “Iberchem will be able to continue on its successful path and increase its leadership through organic growth in existing and new markets and selective M&A,” Fernandez said.

Eurazeo’s deputy CEO, Virginie Morgon, noted that Iberchem meets all the required investment criteria, in particular a strong management team driving superior organic growth with an agile business model that is benefiting from a rising middle class in emerging markets. “We will leverage our expertise in Iberchem's underlying markets, as well as our international network, to accelerate the growth of the company,” she said.

The Paris-headquartered investment firm has also held a majority stake in French chemicals company Novacap since 2016.