The Riverside Company Signs Definitive Agreement to Sell HTBA

The Riverside Company (Riverside), a global investment firm focused on the smaller end of the middle market, announced an affiliated European fund has signed a definitive agreement to sell HealthTech BioActives (HTBA) to Miura Partners, a private equity firm that invests in Southern Europe. HTBA is a science-based global leader in the manufacturing and commercialization of citrus flavonoids and active forms of vitamin B12 for the pharmaceutical, nutraceutical, food and beverage and animal nutrition sectors and sells to customers in more than 60 countries around the world. Closing is subject to customary approvals by regulatory authorities.

Riverside invested in HTBA in December 2019 and has since significantly increased the company’s manufacturing capacity, widened its international distribution and enhanced the firm’s R&D capabilities and expertise, leading to a pipeline strongly focused on new products. The company’s headcount has almost doubled during Riverside’s ownership.

HTBA completed the construction of a new state-of-the-art manufacturing unit in its facility in Beniel, Spain, primarily to produce Vitamin B12 active forms for which HTBA is one of the global market leaders. Under Riverside’s stewardship, HTBA has also invested in new digital and production technologies, streamlined processes and operating divisions and introduced new personnel in key departments throughout the company, including marketing & sales, legal, finance, HR and R&D. Additionally, in line with Riverside’s commitment to responsible investing, over the past five years, HTBA has become a sector leader in sustainability across a number of environmental measures.

Rafael Alvarez-Novoa, Partner at Riverside Europe who led the transaction, commented: “Our divestment of HTBA is the latest example of Riverside’s commitment to growing and supporting mid-market companies that show high growth potential and sound management. This is our fifth completed investment in the specialty ingredients space in Europe, an industry in which Riverside has a lengthy track record and a global network of expertise. HTBA demonstrates Riverside’s ability to lead businesses through challenging macroeconomic environments to deliver consistent value for our portfolio companies.”

Damien Gaudin, Partner at Riverside Europe who participated in the deal, added: “HTBA is another testament to Riverside’s track record in the European healthcare sector. Leveraging our operating resources, we supported HTBA management to deliver an important new pharmaceutical facility, keeping the investment program on time and on budget. The technology transfer was completed according to quality and technical requirements and allowed HTBA to operate on a full independent basis.”

Alex Valls Coma, HTBA CEO, commented: “HTBA has experienced transformational development over the past few years and is well placed to continue to build on its long history of product and manufacturing excellence. With the support of Riverside and its global resources, we have expanded HTBA’s presence and participation in the U.S. – a market that offers so much potential for HTBA’s specialty ingredients – through the opening of an office in Cincinnati, Ohio, with a testing lab that is generating significant interaction and visits with local U.S. customers with great business potential in the coming years.”

Working with Alvarez-Novoa and Gaudin on this deal for Riverside were Vice President Laura Palacio, Senior Associate Jaime Garcia-Oliveros and Operating Partner Jim Browne. Alvarez-Novoa sourced the original deal for Riverside.

Evercore Partners International (for M&A) and A&O Shearman (legal) advised Riverside’s affiliated fund on this transaction.