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%).
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 ($104m1) pro forma in 2015 (14.4% margin).
Ardian, formerly known as Axa Private Equity, has owned the business since 2011.
1€:$ exchange rate of 1.14