Snaith, East Yorkshire-based speciality chemicals giant Croda International said on Wednesday that its fragrances and flavours subsidiary Iberchem agreed to acquire Parfex S.A., a fine fragrance business based in Grasse, France, for a total enterprise value of €45 million. 

Established in 1985 and now employing 75 people, Parfex creates fragrances principally for premium personal care and fine perfumery markets, leveraging the natural raw materials that are available in the Grasse region.

“The business has seen good growth over the last decade, generating €3.6m EBITDA in 2020, and now sells its fragrances in more than 50 countries worldwide,” said Croda.

“Parfex is 82% owned by its founders with the remaining free float of shares listed on the Euronext Access market.

“Croda has agreed to acquire 93% of Parfex’s outstanding shares, comprising the founding shareholders and certain minority investors.

“Croda ultimately expects to acquire 100% of the total outstanding share capital, subject to a potential tender offer and subsequent de-listing.”

Croda is a FTSE 100 company with over 5,600 employees around the world. Croda’s share price has risen about 50% over the past 12 months to give the firm a current stock market value of around £9 billion.

Croda CEO Steve Foots said: “We believe that transitioning to more natural raw materials is a potential differentiator in the fragrance market.

“Parfex will play an important role in Iberchem’s plans to increase its sustainable fragrance offerings and further enhances our position in the creation of higher-value fine fragrances.”

The transaction is subject to customary pre closing conditions and is expected to close by the end of the second quarter of 2021.