Naturex Acquires Berkem’s Actifs Innovants Division

08/01/08 Naturex has announced the acquisition of Berkem’s “Actifs Innovants” division. This business consists of clinically tested and trademarked plant extracts for the pharmaceutical, nutraceutical, cosmetic and food industries. This acquisition includes leading brands and products developed by Berkem over the past 10 years. Among a comprehensive line of innovative botanical extracts with demonstrated efficacy backed by clinical studies, it particularly includes Svetol, the famous green coffee extract for weight loss. The synergies are strong between Berkem’s “Actifs Innovants” division and Naturex’s activities, both in terms of products and customers. Beyond strengthening Naturex’s Health and Nutrition division – a major area of focus and investment – Berkem’s “Actifs Innovants” division expertise will enhance Naturex's innovative product development and promotion abilities. These innovative extracts will be manufactured by Naturex factories and sold in Europe, the Americas and Asia through Naturex’s worldwide sales network.

Berkem’s “Actifs Innovants” division generated a turnover of EUR3.8 million in 2007 with a 34% EBITDA margin. Naturex acquired Berkem’s “Actifs Innovants” division for EUR9.5 million, equivalent to 7.3 times EBITDA. This figure highlights the fact that this acquisition is immediately accretive for Naturex. This acquisition has been financed by using a EUR35 million credit line established for acquisitions in November 2006.

Jacques Dikansky, President and C.E.O. of Naturex, declared “this acquisition will boost our ability to bring more and more innovative health product concepts that will set the market trends, with the competitive advantage to offer health claims supported by all the required scientific proofs, from certificates of authenticity to clinical studies.“

Olivier Fahy, President and C.E.O. of Berkem added “our Actifs Innovants division is a great fit with Naturex, its integration will enable it to pursue and accelerate its growth thanks to Naturex’s means in terms of R&D and sales network”.

The news came as Naturex posted full-year revenues of EUR 79.5 million in 2007, an increase of 20.1% (27.4% at constant USD rates) on 2006. Organic growth stood at 5.8% at current USD rate and at 12.1% at constant USD rate.

Including over 12 months HP Botanicals (acquired on April 1, 2007), Chart Corporation (acquired on December 20, 2007) and Berkem's Active Ingredients division , 2007 pro-forma revenues totaled EUR 88.9 million. Revenues break down as follows: neutraceuticals 56.5%, flavoring and food processing 32.2%, pharmaceuticals 5.5% and cosmetics 2.0%. The United States represented 59.1% of revenues, Europe 24.2%, France 9.7% and Asia/Oceania 3.7%.

Naturex said it will continue to broaden its sales network in 2008 with the setting up of a subsidiary in China and the opening of two sales offices, one in Germany which will also cover the Benelux countries in the first half of the year and the other in Japan in the second half of the year.

The Group intends to generate double-digit organic growth at constant USD rates in 2008.

Last month Naturex acquired Chart Corporation, a United States company specializing in the production of natural flavouring ingredients for the beverage and flavour industries.