LONDON--The Valence Group has advised Eurazeo on its acquisition of Novacap, a global participant in the pharmaceutical and chemicals industry, for an enterprise value of €654m ($746m1), plus up to a €30m ($34m1) earn-out. Following the acquisition, Eurazeo will become the majority shareholder of Novacap with 67% of the equity capital, alongside Mérieux Développement (9%), Ardian (18%) and management (6%). Pending the approval of regulatory authorities, the transaction should be completed by the summer.
Novacap is an international group that produces and distributes Active Pharmaceutical Ingredients (APIs) and essential chemicals products that are used in everyday applications such as aspirin, paracetamol, other APIs, salicylic acid, para-aminophenol, soda ash, sodium bicarbonate, phenol, oxygenated solvents and ferric chloride. Novacap enjoys leading positions in growing end-markets, such as pharmaceutical & healthcare, cosmetics & fragrances, food & feed, home care and environment. The group is an industry leader across a wide range of products (e.g. No.1 in aspirin and salicylic acid globally, No.2 in paracetamol and sodium bicarbonate in Europe). It benefits from a solid European platform complemented by a well-established presence in Asia and an increasing footprint in North America.
With over 750 customers across more than 80 countries, Novacap generated revenue of €634m ($723m1) in 2015. Headquartered in Lyon (France), Novacap employs around 1,600 people across 14 industrial facilities worldwide and has a global commercial network. The company has flourished in recent years, with significant EBITDA growth from €45.6m in 2010 (9.7% margin) to €91.5m ($104m1) pro forma in 2015 (14.4% margin).
Ardian, formerly known as Axa Private Equity, has owned the business since 2011.
Eurazeo is one of the largest European listed investment companies with approximately €5 billion in net assets. Its solid institutional and family shareholder base, robust financial structure and flexible investment horizon enable Eurazeo to support its companies over the long term. Novacap represents Eurazeo’s first investment in the pharmaceuticals and chemicals industries.
Eurazeo is listed on Euronext Paris (EURA.PA).
About The Valence Group
The Valence Group is a specialist investment bank offering M&A advisory services exclusively to companies and investors in the chemicals, materials and related sectors. The Valence Group team includes a unique combination of professionals with backgrounds in investment banking and strategic consulting within the chemicals and materials industries, all focused exclusively on providing M&A advisory services to the chemicals and materials sector. The firm’s offices are located in New York and London.
1 €:$ exchange rate of 1.14