French PE group sees value in ingredient expert Pharmactive

Published: 28-Jun-2021

Private Equity group Siparex has taken a minority stake in natural ingredient specialist Pharmactive

Private Equity group Siparex has taken a minority stake in Pharmactive, a company specialising in the research, development, and extraction of branded natural ingredients.

Pharmactive, a science-based botanical ingredient leader, continues to experience a strong growth and development curve, which has only accelerated since 2017. The company has logged an average annual sales growth greater than 23%, driven primarily by the success of its premium products affron saffron extract and ABG10+, a pioneering black garlic extract.

The company forecasts sales of around €12 million ($14.3m) by the end of fiscal 2021.

The transaction with Siparex Midcap will allow Pharmactive to accelerate its ambitious development plans through external growth and expand its portfolio of natural ingredients and international commercial presence. Approximately 85% of Pharmactive's global activity occurs outside Spain: in Europe, the US, and Asia.

"It's exciting to collaborate with such a well-established PE," enthused Jean-Marie Raymond, CEO and founder of Pharmactive. "This new investment round marks a significant milestone for our company. We experienced expansive growth in 2020, despite the pandemic, and strong sales growth is forecast to continue in 2021."

"Positioned in a booming market, Pharmactive is an innovative company led by an experienced and enthusiastic founding manager," said Pierre Bordeaux Montrieux, Managing Director of Siparex Midcap. "Pharmactive stands out in particular with its unique validation positioning and systematic scientific analysis of premium products," added Stéphane Agaësse, Senior Investment Manager within Siparex Midcap. "We are proud to support them in this new phase of development."

Founded in 2009 by Jean-Marie Raymond, Pharmactive specialises in high-end natural plant-based ingredients (such as the aforementioned saffron and black garlic) for the food supplement industry. In order to ensure the high quality of its products, Pharmactive has developed validation by scientific studies and research. Its in-house laboratories focus on the investigation of plant cultivation, extraction of active ingredients, and control across the entire upstream value chain.

"Consumers are seeking science-supported, natural mental wellness solutions and Pharmactive can fulfill this demand and other emerging trends with branded ingredients backed by science," explains Raymond. "Pharmactive brings innovation, nature, and value to the table, challenging current paradigms."

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