Aroma Zone sale in second round, with high pitches in play

The sale of Aroma Zone, the French essential oils company, is now in the second round, with bidders Ardian (via portfolio company Inula), Eurazeo and Bain, according to sources.

The company, which is marketed at roughly €35 million EBITDA, is attracting high pitches, although the direct lending route seems to be the most likely as very high valuations are expected, according to sources. The enterprise value is expected to go as high as 12x-15x, sources said.

"If you have a high EV, then you have a high leverage, so it's most likely be a unitranche financing," one of the sources added.

Pitches are at roughly 5.5x EBITDA for banks, while for debt funds they are around 6.5x-7.5x, sources said.

Aroma Zone hired Societe Generale for a sale back in early 2020.

Started as an online essential oil retailer founded by Anne Vausselin and family members in 2005, the company is based in Provence, specializing in oils and natural beauty products.

In 2018, the €217 million Term Loan B backing Ardian's buyout of Inula Natural Health priced and allocated at E+450 with a 0% floor, offered at 99.5. Credit Agricole CIB, Natixis, NatWest Markets, SMBC and Societe Generale CIB arranged the deal, which is cov-loose and unrated. Ardian agreed to buy Inula in October 2018 from Vendis Capital.