The French leading player in bio-based chemistry has signed a definitive agreement with Givaudan concerning the acquisition of their industrial site Naturex Iberian Partners, in Valencia, Spain.
With this acquisition, Groupe Berkem significantly increases its production capacity in plant extraction for the “Health, Beauty and Nutrition” division. As part of this transaction, 47 employees at the Valencia site will also bolster the group’s current workforce and expertise.
“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,” stated Olivier Fahy, Chairman and CEO of Groupe Berkem.
According the agreement, the marine ingredients production activity carried out for the Givaudan Group will continue in the form of a long-term partnership.
“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,” added Alex Wild, Head Operations Taste & Wellbeing of Givaudan.
The acquisition will be 100% funded by the External Growth Credit Line contracted by Groupe Berkem on July 26, 2022, and will be led by Berkem Développement (a 100% owned subsidiary of Groupe Berkem). The transfer of ownership of the shares should be completed on May 31, 2024.
Groupe Berkem plans to make important investments at its new production site, notably in capacity to ensure the gradual ramp-up of the site.
The company achieved a turnover of 52.4 million euros in 2023 (up 1.6% compared to the previous year), including 16.7 million euros for the “Health, Beauty & Nutrition” business area (up 5.6%). The group is targeting a revenue of at least 85 million euros by 2025.