Siparex’s minority stake in Pharmactive is moving Pharmactive one step closer to accelerating its development plans through external growth and expand its portfolio of natural ingredients and international commercial presence.
Stéphane Agaësse, senior investment manager within Siparex Midcap, said the company is proud to support Pharmactive in this new phase of development.
“Pharmactive stands out in particular with its unique validation positioning and systematic scientific analysis of premium products,” added Agaësse.
International growth plans
Marguerite Gerritsen, managing director at Pharmactive, told NutraIngredients-USA that Pharmactive is developing ingredients and product solutions based on existing and new ingredients, along with other portfolio expansion such as the addition of autochthonous Mediterranean botanical extracts.
“Pharmactive is already present in over 47 countries, but we are recognizing that certain regions are intrinsically growing faster than others. Dealing with customers from our home base in Madrid, Spain, has its limits and we recognize that to be successful, we need a more local presence to understand local regulation, customs and customer needs. Therefore, the transaction will allow us to invest in those markets more heavily,” explained Gerritsen.
Indeed, about 85% of Pharmactive’s global activity takes place outside Spain, with most occurring in Europe, the US, and Asia.
According to Gerritsen, Pharmactive was looking for a partner with solid experience in scaling companies.
“The relationship between Siparex and Pharmactive started as a conscious effort from Pharmactive to look for investment partners considering its ambitious international growth plans. We needed a strong partner who shares the same corporate values as Pharmactive; that is, innovating through science backed ingredients, that comes with a heavy focus on R&D and investment in clinical studies. A partner that could bring to Pharmactive support in terms of offering access to a broader international network of business partners in key markets such as Asia, and the Americas, but also a partner that understood Pharmactive´s intention to bridge the gap between Pharma and Nutra,” said Gerritsen.
Strong growth since 2017
“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,” said Jean-Marie Raymond, CEO and founder of Pharmactive.
According to the company, Pharmactive has experienced an average annual sales growth greater than 23% since 2017, driven primarily by the success of its premium products affron saffron extract and ABG10+. The company forecasts sales of about 14 million by the end of fiscal 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.