Croda International has completed the £38.7 million buy-out of French fine fragrance business Parfex.
The deal is part of a strategic push to enhance its position in the sector, and was done through the East Yorkshire giant’s wholly-owned Iberchem subsidiary.
It follows the acquisition of Parisian botanical ingredient supplier Alban Muller for £15 million.
Parfex, based on the French Riviera, near Cannes, creates fragrances for premium personal care and fine perfumery markets, using natural raw materials that are available in the region.
A controlling majority of 95.6 per cent of the shares - from the founders and certain minority investors - has been taken by the FTSE-listed smart science giant, headquartered in Snaith.
Ramón Fernández, chief executive of Iberchem, said: "This acquisition is a cornerstone in the growth plan of the company.
“With its history and abundance of natural raw materials, Grasse is a world-renowned French town which is especially relevant for any fragrance house. Parfex will further enhance our portfolio of sustainable and natural fragrances, serving our ambition to rank among the leaders of this industry.”
In an announcement to the City this week it said it had plans for a tender offer to take the remainder, de-listing Parfex from the Euronext Access market.
Launched in 1985, Parfex’s 75-strong team - located in Grasse - sells fragrances to more than 50 countries. Earnings of £3 million were generated last year.
Kurt Tschopp, general manager of Parfex, said: “With great satisfaction we become part of Croda and become the premium brand of their dynamic fragrance division Iberchem.
“I am enthusiastic about this deal which offers new horizons to our company and assures its future. Thanks to the numerous synergies between the three companies, we have significant opportunities to accelerate our growth. We’ll focus on our passion to continue to create fragrances with high consumer acceptance, service our customers and reinforce our brand internationally."
Croda's focus on the personal care market is stepping up, with a review underway into its performance technologies and industrial chemicals business unit - with Hull, Holland and China sites to potentially be sold.
