Private equity giants CVC, Bridgepoint and Charterhouse are vying for Spanish fragrance creator Iberchem as current owner Magnum attempts to prove its worth

 
Lucy White
(FILES): This 02 May 2005 file photo sho
Iberchem makes fragrances for high-end perfumes and for industrial or functional use (Source: Getty)

Private equity giants including CVC Capital Partners, Bridgepoint and Charterhouse have expressed an interest in Spanish fragrance business Iberchem.

The three firms, which individually own household names such as RAC, Fat Face and Zizzi's, are just a few of what one source says will be “thousands” of interested parties.

Although the sale process is currently only at the first-round offer stage, an eventual deal could value the company at around €400m (£347m), according to Reuters.

This would generate a welcome return for its current owners, Magnum Capital. The Iberian firm acquired Iberchem in 2013 for around €80m, according to local media at the time.

However, sources in the Spanish private equity market have told City A.M. that Magnum is now struggling to raise its latest fund, and needs to prove its mettle to investors by selling off some portfolio companies.

Iberchem, which is headquartered in Spain, makes fragrances for high-end perfumes and for industrial or functional use, such as in shower gel, cleaning products and air fresheners.

The business made revenues of €105m in 2015, according to Magnum, and exports to more than 100 countries.

CVC has also been named in connection with The Body Shop, which current owners L'Oreal put up for sale earlier this year.

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