Natural Planet Holding acquired Girasol Natural Products

Stem op deze deal via de stempagina: https://mena.nl/genomineerden-best-small-cap-deal-2024/

Name of the deal: Natural Planet Holding (backed by Karmijn Kapitaal) acquired Girasol Natural Products
Date announced: August 27, 2024
Date closed: August 27, 2024
Published value: € 5 – 25 million
Buyer(s): Natural Planet Holding, backed by Karmijn Kapitaal
Target: Girasol Natural Products B.V. and Oxer Research B.V.
Seller: Springtime Cosmetics B.V. and La Quaestor B.V.

Involved firms and advisors

Involved firms and advisors buy side:
DeBreij, Flynth, Atlas, MJ Hudson, Argon&Co, Holtara, ReR Advies, Match Plan

Involved firms and advisors target:
Clairfield, MA Law

Involved firms and advisors sell side:
Clairfield, MA Law

Pitch

Deal Outline
Girasol Natural Products, a producer of all-natural emulsions and gels, has sold a majority stake to Natural Planet Holding, backed by Karmijn Kapitaal. The sellers have re-invested in the parent company, acquiring a 10% equity stake.

About Natural Planet Holding
Natural Planet Holding is a cosmetics company based in Beverwijk, the Netherlands, specializing in the formulation and production of natural, water-free cosmetics for various brands and private labels, including “Wild” and “We Love The Planet.” The company aims to establish itself as a leading European platform in the sustainable cosmetics industry.

About Girasol Natural Products
Girasol Natural Products, based in Breda, Netherlands, specializes in the development and production of natural personal care products. Founded in 1996, the company focuses on providing private label solutions, guiding clients through every stage of product development, from initial concept to market-ready products. The company offers a diverse range of products, including natural cosmetics, medical devices, food supplements, and veterinary care items. Their commitment to sustainability is reflected in their formulations, which avoid microplastics, silicones, GMOs, and other synthetic ingredients. Girasol emphasizes the use of high-quality natural ingredients, ensuring that their products meet various certifications for safety and sustainability.

The Girasol Natural Products B.V. annual revenue was $5 million in 2024.

Why This Deal Should Win the Award for Best Deal Small-Cap 2024
This deal deserves a nomination because the combination of Girasol and Natural Planet Cosmetics significantly enhances both companies and complements each other in various areas, such as production and commerce. The management of Natural Planet Holding (both the CEO and CFO are women) gave the seller lots of trust, which made them willing to re-invest in the parent company. Although the process was lengthy and complex, both the seller and buyer maintained their trust in the successful completion of the deal.

Deal Rationale
Marlies van Lohuizen, CEO of Natural Planet Holding: “With the acquisition of Girasol Natural Products, Natural Planet Holding intends to strengthen its position in personal, home & cosmetics care industry and stimulate more sustainable products on an international scale both via b2b and b2c markets.”

Impact of This Deal on the Company
With a strong focus on innovation and sustainability, Natural Planet Holding aims to significantly expand these sustainable activities in the coming years. This acquisition is an important step in that direction, whereby the synergy between both companies will lead to more innovative and environmentally friendly solutions for both retail and consumers.

Joost Marsé, Girasol Natural Products: “The owners of Girasol Natural Products were looking for a strong strategic partner to guarantee continuity and ambition of the company. The shareholders have found a strong partner in Natural Planet Holding – with Marlies van Lohuizen – to transfer their majority stake. Girasol Natural Products is confident that partnering with Natural Planet Holding will optimally represent the interests of customers and employees.”

Impact of This Deal on Direct Stakeholders
Given that the selling shareholders are approaching retirement age, this transaction provides continuity and renewed energy for Girasol and its employees. However, the selling shareholders will re-invest 10% in the parent company and remain available for advise.    As Girasol is larger than Natural Planet Cosmetics, this transaction presents several advantages for both the buyer and employees. The increased scale allows for significant opportunities to learn from each other in various areas, such as enhancing production processes, packaging, and distribution. Additionally, there will be greater capacity for investments in innovation, enabling the company to offer customers a broader product portfolio.

Impact of This Deal on Society
Both companies embrace the production of natural products and aim to further distinguish themselves in this area. They will work to further expand their portfolio of natural products and make them widely accessible to consumers. This is what Karmijn Kapitaal (B Corp) finds attractive about this proposition and would like to invest in a further buy-and-build strategy.

Brigitte van der Maarel, Karmijn Kapitaal: “The mission of Natural Planet Holding is to play a leading role in the transformation to sustainability within the household and personal care industry. The acquisition of Girasol Natural Products offers the opportunity to realize sustainable growth and create value. For us as an investor, factors such as diversity and ESG are important and Girasol Natural Products fits in well in that respect.”

Most Complex Aspect of This Deal
The process was lengthy and had multiple reasons for the delays. While I won’t list them all, negotiations regarding the new cap table in the parent company were a significant delaying factor. Not only did the seller re-invest, but the new management of Natural Planet Holding also needed to join as shareholders.