TAGS: Sustainability / Natural Cosmetics
Groupe Berkem, a bio-based chemistry player (ISIN code: FR00140069V2 - Ticker: ALKEM), has signed a definitive agreement with Givaudan. Givaudan is one of the world leaders in creating flavors and fragrances (ISIN code: CH0010645932 - Ticker: GIVN). The agreement concerns the acquisition of Naturex Iberian Partners. It is Givaudan's industrial site in Valencia, Spain.
Reinforce Industrial Facilities Dedicated to Plant Extraction
Olivier FAHY, Chairman and CEO of Groupe Berkem, stated,
"We are delighted to welcome the teams from the Valencia site (Spain) to our Group, and to benefit from their proven expertise in plant extraction, strengthening the value proposition of our "Health, Beauty and Nutrition" division. This new, structural acquisition will enable us to pursue the internationalization drive initiated last year with our entry into North America."
"The site we are acquiring, in which we plan to make substantial investments, should enable us to reinforce our industrial facilities dedicated to plant extraction and significantly increase our production capacity to meet the growing demand from manufacturers for sustainable solutions."
Alex Wild, head Operations Taste & Wellbeing of Givaudan, added,
"We are confident that the agreement reached today opens new horizons for the Valencia (Spain) industrial site and its teams. We are also delighted about the long-term partnership with Group Berkem that will enable continued production of our marine ingredients on the site to serve our customers for the years to come. Our teams will now work hand in hand to ensure a seamless transition, ensuring the continuity of our operations and the quality of our services."
Givaudan's site in Valencia (Spain) specializes in the extraction of plant and marine products for players in the food, nutrition (nutraceuticals) and cosmetics markets.
With this acquisition, Groupe Berkem significantly increases its production capacity in plant extraction for the "Health, Beauty and Nutrition" division. It should be noted that as part of the sale of Givaudan's industrial site in Valencia (Spain) to Groupe Berkem, the marine ingredients production activity for the Givaudan Group will continue as a long-term partnership. 47 employees at the Valencia (Spain) site will also bolster Groupe Berkem's current workforce and expertise as part of this transaction.
The acquisition will be 100% funded by the External Growth Credit Line contracted by Groupe Berkem on July 26, 2022. Berkem Développement, a 100% owned subsidiary of Groupe Berkem, will lead the acquisition. The transfer of ownership of the shares should be completed on May 31, 2024.
Groupe Berkem plans to invest in its new production site, particularly to grow its capacity. The additional expenses from this expansion mean the profit targets announced by the Group on October 13, 2023, are no longer valid. As a reminder, the Company was aiming for an EBITDA margin of around 25%, to be achieved by 2025. Groupe Berkem now expects to reach this target by 2027.
Source: Groupe Berkem
