Riverside Co agreed to sell its investment in Euromed Botanicals SA to Germany’s Dermapharm Holding SE. Financial terms weren’t announced. Euromed, of Barcelona, Spain, provides provides standardized herbal extracts and natural active substances for the pharmaceutical, dietary supplement and cosmetic industries. Riverside made 4.3x its money with the sale, while the IRR was 60 percent, a source said.
The Riverside Company has signed a definitive agreement to sell its investment in Barcelona-based Euromed Botanicals S.A. (Euromed) to Germany’s Dermapharm Holding SE (ISIN: DE000A2GS5D8). Euromed provides standardized herbal extracts and natural active substances for the pharmaceutical, dietary supplement and cosmetic industries. The transaction is expected to close in the next few months upon receipt of antitrust approval.
Riverside invested in the company back in 2015. Euromed 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,” said Riverside Partner Karsten Langer. “Working with a strong management team, we were able to help Euromed’s sales grow at a CAGR in excess of 16% 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% and providing complementary products to the portfolio of dietary supplements and functional food ingredients. The add-on created significant value and the necessary production capacity to sustain growth for the future.
“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,” said Riverside Partner Rafael Álvarez-Novoa. “We built a new R&D center at the Euromed headquarters with 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.”
“It has been a wonderful journey with The Riverside Company,” said Javier Roig, CEO of Euromed. “We’ve come so far in just three years achieving so many strategic initiatives, including the add-on investment and the launching of the Innovation Centre. Now starts another exciting chapter for our team and business.”
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 provided legal counsel on the transaction for Riverside; EY advised on financial and tax due diligence. Rothschild and Fidentiis served as M&A financial advisors.