AromataGroup completes the acquisition of IPAM
Milan/Düsseldorf/London — Ambienta SGR SpA, one of the largest sustainability-focused private equity investors in Europe, announces that its portfolio company AromataGroup SRL (“Aromata”) has completed the 100% acquisition of Industrie Prodotti Alimentari Manenti (“IPAM”), a market leader in the production and distribution of ingredients for the food industry.
The flavor and colorants market is worth over €12 billion and is expected to grow at an annual rate of 3–4% over the next five years, underpinned by long-term sustainable growth drivers. Ambienta recognized the growth potential of natural food ingredients. Natural raw materials represent the strongest growth driver in the food industry, with global growth of 7% versus zero growth for synthetic products. Substitution of synthetic chemicals (from oil or inorganic chemicals) in flavor or colorant recipes with natural ingredients that are organic and pose no health risks is increasingly preferred by food manufacturers and consumers.
As a leading manufacturer of natural flavors and colors for the food industry, Aromata is well positioned to support the shift to natural, healthier foods. Aromata has three production facilities in northern Italy and serves over 1,200 customers in 50 countries. In 2018, the Group generated approximately 30 million euros in sales, 5 million euros in EBITDA and contributed to avoiding 83 tons of pollutants. After a successful 2018, Aromata continues to invest to expand its product and application portfolio: the acquisition of IPAM marks Aromata’s expansion into the adjacent savory ingredients market.
IPAM is the Italian leader in the production and distribution of high quality and functional ingredients for the food industry, such as breadcrumbs and dough mixes, marinades and flavors. IPAM is based in Zibello Polesine, in the heart of the Italian “Food Valley”, and supplies over 300 customers from two production sites.
The acquisition of IPAM will enable Aromata to gain a foothold in the large and attractive ’savory’ ingredient market, offer new customers a more extensive range of natural flavors and colors, and jointly develop both companies’ natural ingredient offerings. The transaction provides Aromata with further expansion in the ingredients market to meet increasing customer demand.
Hans Udo Wenzel, President of AromataGroup, says: “The acquisition of IPAM is the first step in Aromata’s strategic expansion plan, enabling Aromata to broaden its product range and strengthen its main competitive advantage, which is to offer a full range of products to its customers.”
Eugenio Manenti, founder and CEO of IPAM, added, “We are very pleased to join Aromata’s buy-and-build project and further expand the group’s leadership in natural ingredients.”
Mauro Roversi (photo), Partner & Chief Investment Officer at Ambienta, commented, “Strategic acquisitions are key to the growth of our portfolio companies. We welcome the IPAM team to Aromata and look forward to further growing our joint business.”
Ambienta is a leading European private equity fund based in Milan, Düsseldorf and London. The focus is on growth investments in industrial companies that focus on sustainability trends. With over €1 billion in funds under management, the world’s largest pool of capital for this strategy, Ambienta has made 32 resource efficiency and environmental investments across Europe to date. Ambienta actively participates in the development of its portfolio companies, providing industry and management expertise and global connectivity. www.ambientasgr.com.