Riverside Announces Investment in Spain’s HealthTech BioActives

Private equity firm The Riverside Company has announced an investment in HealthTech BioActives (HTBA), a Spanish manufacturer of active pharmaceutical ingredients (APIs), excipients, flavorings and sweeteners for the pharmaceutical, nutraceutical and cosmetic industries.

Posted Sunday, December 15th 2019
Riverside Announces Investment in Spain’s HealthTech BioActives

Rafael Alvarez-Novoa

HTBA, which also manufactures ingredients for human and animal feed, had total sales of €51 million in 2018. The company’s products, derived from citrus and vitamin B12 derivatives, sell in more than 90 countries worldwide.


HTBA is a carve-out of Ferrer, a pharmaceutical company headquartered in Barcelona.


The deal includes the 140 employees of HTBA, including the commercial team, the manufacturing plant located in Beniel (Murcia) dedicated to bioflavonoids and natural flavors, the Sant Quirze plant (Barcelona) dedicated to animal nutrition, and the workshop dedicated to Vitamin B12 derivatives located in Sant Cugat (Barcelona).


A Riverside statement said: “Riverside is attracted to the global market for these unique ingredients-based companies because of positive growth trends in nutraceuticals and food ingredients, particularly among mid-sized and smaller companies, boosted by changing consumer preferences towards more natural and healthier food.”


Riverside partner Rafael Alvarez-Novoa said: “We are looking forward to working with the already successful HTBA team. Some of our priorities when working with HTBA will be to focus on strengthening the commercial team and implementing a sales excellence program to boost revenues, pursue new customers and accelerate new product development.”


In addition to Alvarez-Novoa, Riverside’s team also included senior associate Michele Volpe and associate Laura Palacio Aragon.


This investment follows Riverside’s successful recent divesture, in early 2019, of Euromed, a Spanish-based company specializing in the production of standardized botanical extracts and natural active substances for the pharmaceutical and dietary supplement industries.

 

The disinvestment of HealthTech BioActives represents “another key step in Ferrer’s strategy of focusing on its core business: the research, manufacturing and commercialization of branded pharmaceutical products that offer patients and healthcare professionals innovative treatment options”, the statement said. “This process of restructuring Ferrer’s assets, which Mario Rovirosa began as CEO in 2018, has significantly reduced the complexity of the company and aims to ensure financial sustainability.”


Rovirosa said: “We are very pleased to have reached this deal with Riverside. Not only does it reinforce our corporate strategy to focus on the branded pharma market, but it also offers a future of growth for HealthTech BioActives.”


KPMG acted as carve-out and financial advisor, while Garrigues and Advocatenkantoor Parmentier provided legal and tax counsel. Allen & Overy acted as a legal advisor for the financing process, Dextra Corporate acted as exclusive buy-side M&A advisor, and PWC acted as ESG and buy-side debt advisor. Roland Berger acted as commercial advisor, while financing for Riverside was provided by LGT Private Debt.


Deloitte served as financial, legal, tax and exclusive sell-side M&A advisor on the deal for Ferrer.