Private equity fund The Riverside Company, which specialises in investing in the small and medium-sized enterprise market, has acquired a majority stake in Essential Composicions.
Riverside's plans are to reinforce the team and resources in sales and marketing as well as R&D, further strengthening the team of perfumers, to drive an ambitious organic growth plan, particularly internationally. The private equity firm will also explore organic growth opportunities in what remains a fragmented market with opportunities for consolidation.
Essential Compositions has a compelling value proposition that has led The Riverside Company to invest in the company and offers exceptional product quality with a high value-added customer service, including regulatory advice.
Karsten Langer, Managing Partner of Riverside Europe, commented: ‘We are delighted to have successfully executed this new investment in the value-added ingredients industry, a sector where we have a long track record as well as a global network of contacts and experience that reinforces our investment thesis. The F&F (Fragrances and Flavours) industry appeals to us because of the positive growth trends it has going forward, particularly in the small and medium sized business segment where Essential Compositions is located.’
‘We are very grateful to the Catalá family for their confidence in Riverside as the majority partner for this investment. Essential Compositions has a wide range of innovative and high quality products, a fantastic heritage and an enviable market position,’ said Rafael Alvarez-Novoa, Partner of Riverside Europe. ‘Through our alliance with the family, we aim to help in the transition from a family business to a global company, while maintaining the authenticity, quality, innovation, creativity and customer-focused culture that Essential Compositions has created throughout its history. With our strong and successful experience in ingredient and fragrance businesses in both Europe and the United States, we look forward to working with the Essential Compositions team, strengthening their commercial and marketing capabilities to drive growth both domestically and in international markets.’
Alberto Catalá, Commercial Director of Essential Compositions, commented: ‘Riverside's deep experience in the F&F sector and its global resources, particularly in the US, Europe and Asia, make the private equity firm the ideal partner to help our organisation continue its international development. Essential Compositions has been a family-owned business since its inception, so it was important to find a partner that would respect this legacy while helping the company take advantage of the growth opportunities it currently has, particularly in international markets. My brothers and I have reinvested alongside Riverside and we look forward to this new chapter for Essential Compositions with Riverside as a new international partner.