October 24, 2011
NATUREX, the global leader in specialty plant-based natural ingredients, informs shareholders of the acquisition BURGUNDY Botanical Extracts, a French manufacturer and supplier of plant extracts for the nutraceutical, pharmaceutical and personal care industries.
Consideration for this acquisition was paid in cash according to an enterprise value based on a multiple of 1.2 times sales (€14 million over the last twelve months).
BURGUNDY will be consolidated by NATUREX Group in its financial statements as of 1 October 2011.
A European player in natural chemicals.
With twelve years of expertise in botanical extracts, combined with a solid knowledge of medicinal plants and phytochemistry / biochemistry, BURGUNDY is among the European leaders in this market.
BURGUNDY employs around 60 people at its two production sites based in France (Reyssouze – Department of Ain) and Spain (Palafolls) with significant capacity for extraction, purification and drying operations.
BURGUNDY has three major markets and a service activity that had total revenue of €13 million in 2010In addition, BURGUNDY products are distributed in 35 countries on five continents to a diverse customer base that includes major global pharmaceutical companies and key names in the cosmetics and nutraceutical (medicinal food supplements) industries.
A strengthened manufacturing base and an expanded commercial offering.
BURGUNDY’s addition to the Group will strengthen NATUREX’s industrial base and ability to meet customer needs by developing expertise in the nutraceutical, pharmaceutical and personal care markets through its complementary product portfolio (active substance master files, new botanical extracts, active ingredients).
BURGUNDY will in tu benefit from NATUREX’s industrial and technological expertise in sourcing raw materials, product innovation and the strength of its sales network to maximise synergies and grow its customer base in developed and emerging countries.“This acquisition fits perfectly with NATUREX’s strategy for pursuing growth in its different markets. It is an excellent development opportunity in terms of both manufacturing capacity and commercial positioning”, commented Jacques Dikansky, NATUREX’s Chairman-CEO and founder.
“With our successful track record in integrating companies and the promising potential for synergies and cross-selling from this merger, we are confident in our ability to generate sustainable profitable growth, creating value for our customers, employees and investors.”
Christophe Magnin, Chairman of BURGUNDY added: “Combining the forces of BURGUNDY will contribute to developing the industrial and scientific strengths of both these two entities. NATUREX’s proactive commercial network will promote greater customer proximity and enhance service quality.”
As exclusive M&A advisors to Naturex, Canec Inteational initiated and facilitated the transaction.