Eurazeo in Advanced Talks to Acquire Novacap From Ardian

  • Two private equity firms are in exclusive negotiations
  • Ardian looking to sell its majority stake in Novacap

Eurazeo is in exclusive talks to acquire a majority stake in Novacap from Ardian in what would be the French private equity firm’s first investment in a chemicals company.

Talks are over a majority stake in Lyon-based Novacap, Ardian said in a statement on Monday. Ardian would remain a minority shareholder, it said. Eurazeo has partnered with Merieux Developpement to make the acquisition.

Eurazeo, which has largely invested in consumer-facing businesses including Accor Hotels and Europcar, is making a foray into chemicals in the midst of an uptick in mergers and acquisitions in the sector. The buyout firm acquired animal-nutrition supplier InVivo a year ago, and participated in the auction of flavorings company Diana Group, eventually bought by Symrise AG for about $1.8 billion in 2014.

Ardian has grown Novacap through acquisitions since buying the business in 2011. It purchased Germany’s CU Chemie Uetikon GMBH from Equistone Partners Europe Ltd. to expand in active pharmaceutical ingredients, one of a number of acquisitions aimed at focusing the company on more profitable products and markets such as cosmetics and fragrances.

Eurazeo was advised by the Valence Group and Lazard on the purchase.

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