The Riverside Co. is selling its investment in Euromed Botanicals S.A. to Germany's Dermapharm Holding SE. The deal is expected to close in the next few months on receipt of antitrust approval.
The 2015 investment by Riverside Europe Fund V achieved a 4.3x money multiple and a gross internal rate of return of 60 percent, according to European data tracker Unquote.
Euromed, a Barcelona-based provider of standardized herbal extracts and natural active substances for the pharmaceutical, dietary supplement and cosmetic industries, processes more than 5,000 tons of raw materials every year to produce high-quality extracts to meet the needs of more than 300 customers in 35 countries worldwide.
“Euromed’s already-premier brand and quality product offering were extremely appealing during our initial investment,” Riverside Partner Karsten Langer said in a statement. “Working with a strong management team, we were able to help Euromed’s sales grow at a CAGR in excess of 16 percent and increase earnings by two times under Riverside’s ownership.”
During Riverside’s investment, Euromed acquired ProbelteBio as an add-on, enhancing production capacity by approximately 30 percent and providing complementary products to the portfolio of dietary supplements and functional food ingredients. The add-on created the necessary production capacity to sustain growth.
“Euromed presented us with an exciting opportunity to expand its portfolio by adding new processes and best practices — especially as it relates to R&D and new product development,” Riverside Partner Rafael Álvarez-Novoa said in a statement. “We built a new R&D center at the Euromed headquarters with the latest lab equipment to help implement a structured product development process, allowing the sales team to present customers with new opportunities, constantly seeking to develop innovative products and applications for the extracts that they already commercialize, and to develop new extracts.”
Working with Langer and Álvarez-Novoa on the deal for Riverside were:
- Principal Damien Gaudin
- Associate Michele Volpe and
- Senior Operating Executive Juan Rufilanchas.
Allen & Overy and Peter Parmentier provided legal counsel on the transaction for Riverside. EY advised on financial and tax due diligence. Rothschild and Fidentiis served as M&A financial advisers.
