Magnum Capital acquires Spanish fragrance business

For the Madrid-based firm, which is currently investing its €866m maiden fund, this is its eighth investment since its inception in 2006.

Magnum Capital, an Iberian private equity firm, has acquired a majority stake in fragrance and flavours manufacturer Iberchem, according to a statement. 

The investment was made from Magnum’s debut fund, Magnum Capital, an €866 million, 2007 vintage. 
Magnum did not respond to a request for comment at press time. Financial details of the transaction were not disclosed. 

Iberchem is a Spanish fragrance and flavours manufacturer, which has more than 320 employees across its subsidiaries and 11 production centres in Spain, Indonesia, Malaysia, India, Italy, Tunesia, Colombia and Mexico.
Magnum plans to continue Iberchem’s global expansion strategy. It seeks to consolidate its position in China, Indonesia and the Middle East and enter other emerging markets. 

It is the eighth investment Magnum has made since its inception. The firm generally targets equity investments of €50 million to €150 million in companies with an enterprise value of €150 million to €800 million, although it does selectively consider larger or smaller investments, according to its website. 

“Our investment in Iberchem represents a long-term commitment with a leading Spanish firm, in a highly exporting industry such as fragrances and flavours. Iberchem exports more than 90 percent of its sales to other countries, mainly to emerging economies that are in full expansion,” Enrique de Leyva, a founding partner of Magnum Capital, said in the statement. 

Magnum's investor base is made up of 41 local and international investors, mainly pension funds, financial entities and insurance companies, according to its website, including Canada Pension Plan Investment Board and California Public Employees’ Retirement System, according to PEI’s Research & Analytics division