Essential Compositions Secures Riverside Investment
Deal News | Dec 19, 2024 | Riverside
The Riverside Company, a global investment firm, has announced the acquisition of a controlling stake in Essential Compositions, a Spanish company specializing in fragrances. This investment highlights Riverside's strategic focus on the specialty ingredients sector, marking their sixth such investment in Europe. Essential Compositions, founded in 1980 and known for its robust R&D and a catalog of over 20,000 formulations, services a wide international clientele. Riverside aims to leverage its industry expertise to boost Essential Compositions' commercial and R&D capabilities, supporting its ambitions for organic growth and international expansion. The firm envisions pursuing a buy-and-build strategy to consolidate the fragmented market. Essential Compositions remains family-influenced, with the Catal brothers reinvesting in the company alongside Riverside. This deal is part of Riverside's longstanding investment in the European ingredients market, bolstered by its previous investment experience in companies across Germany, Italy, Netherlands, and Spain.
Sectors
- Specialty Ingredients
- Flavors & Fragrances
- Private Equity
Geography
- Spain – Essential Compositions is based in Ganda, Spain, and this deal highlights the region's burgeoning specialty ingredients sector.
- Europe – Riverside's investment strategy focuses on the European specialty ingredients market, with Essential Compositions as its latest investment.
- Global – Essential Compositions serves clients in over 40 countries, illustrating the global scale of its operations.
Industry
- Specialty Ingredients – The acquisition is centered around Riverside's continued interest in the specialty ingredients market where the firm is looking to expand its portfolio.
- Flavors & Fragrances – Essential Compositions operates within the Flavors & Fragrances industry, developing innovative fragrance products for various applications.
- Private Equity – The deal involves The Riverside Company, a private equity firm, acquiring a controlling stake in Essential Compositions.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| The Riverside Company | Bidding Company | Company | A private equity firm that purchased a controlling stake in Essential Compositions. |
| Essential Compositions | Target Company | Company | A Spanish developer and manufacturer of fragrances, acquired by Riverside. |
| Karsten Langer | Managing Partner at Riverside Europe | Person | Managed the investment process for Riverside in Europe. |
| Rafael Alvarez-Novoa | Partner at Riverside Europe | Person | Involved in managing Riverside's investment in Essential Compositions. |
| Alberto Catal | Chief Commercial Officer of Essential Compositions | Person | Part of Essential Compositions' family management team. |
| Gomez Acebo & Pombo | Legal M&A Advisor | Company | Provided legal advisory services to Essential Compositions for the transaction. |
| Implica Corporate Finance | M&A Advisor | Company | Advised Essential Compositions on the M&A. |
| A&O Shearman | Legal M&A Advisor | Company | Advised Riverside on the legal aspects of the M&A. |
| KPMG | Commercial, Operational, Financial, Tax, Legal and Labour Due Diligence Advisor | Company | Conducted due diligence for Riverside’s acquisition. |