EQT announces M&A; agenda within Natural Color's
September 28, 2020
Chr. Hansen sells its Natural Colors business, a global developer and manufacturer of natural coloring ingredients for food and beverages to EQT IX. Back in July, we predicted that EQT could be a potential buyer of Natural Colors in our “pitch of the day”. EQT plans to invest significantly in Natural Colors’ organization and strengthen its digital infrastructure, moreover it is disclosed that EQT will support an acquisitive expansion in a highly fragmented food coloring market. The purchase price is disclosed to reach EUR 800m, Natural Colors had sales of EUR 224m and EBIT of EUR 28.5m in the year 18/19, implying an EV / EBIT of 28.1x (assuming that the transaction is completed on a cash- and debt-free basis). Mads Ditlevsen serves as Partner at EQT. Nordea acted as buy-side advisor, while Goldman Sachs was hired for the sell-side.
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