New Directions Acquires Aromatic Fragrances International

New Directions Aromatics, a portfolio company of TruArc Partners, has acquired Aromatic Fragrances International.

Aromatic Fragrances is a manufacturer and supplier of compounded and custom fragrance oils used in beauty, personal care, home fragrance, candle, and industrial applications with products that include soaps, body oils, cleaners, and other scented goods. The company operates with in-house perfumery and research capabilities and has a fragrance library that is used to support formulation and scent replication for its customers.

Aromatic Fragrances was founded in 2013 by Sean Riordan and Josh Thompson and is headquartered northwest of Atlanta in Cartersville, Georgia. Similar to New Directions, Aromatic Fragrances operates an e-commerce-enabled model that facilitates ordering and customization and manufacturing from its Cartersville facility.

New Directions is a wholesale supplier of natural and organic raw materials used by beauty, personal care, health, and wellness manufacturers. The company’s catalog includes essential oils, carrier oils, butters, botanical extracts, cosmetic bases, and other raw materials that are incorporated into creams, lotions, fragrances, aromatherapy products, and other consumer goods.

Customers of New Directions include cosmetics makers, soap and candle producers, spa-related businesses, and larger formulators that are supported through an e-commerce platform that supports ordering for both formulation and production. New Directions, led by CEO Sergio Pereira, was founded in 1998 by Alex Thomas and is headquartered in Toronto.

The buy of Aromatic Fragrances is New Directions first add-on acquisition since being acquired by TruArc in January 2022. “This combination brings together two highly complementary businesses with strong customer alignment and differentiated capabilities,” said Don Sturdivant, an operating partner at TruArc.

“Aromatic Fragrances’ product development expertise and e-commerce-enabled operating model complements our core focus of providing natural and organic ingredients through a digitally driven customer experience,” said Mr. Pereira. “Combined, we are positioned as a specialty ingredients platform focused on expanding customer access to differentiated inputs, while remaining true to our guiding principles of quality, innovation, and service.”

“We built Aromatic Fragrances in an effort to make fragrance innovation accessible and reliable for growing brands,” said Mr. Riordan. “This partnership brings together complementary capabilities intended to provide customers access to broader ingredient capabilities and enhanced resources.”

“This partnership aligns with our investment strategy by expanding New Directions footprint into the US while remaining focused on consumer end markets, an e-commerce enabled business model and product-defining ingredients,” said Gerald Sheehan, a partner at TruArc Partners. “We look forward to supporting the combined organization as it integrates its capabilities and serves its customers.”

New York City-based TruArc (formerly Snow Phipps Group) makes equity investments of $50 million to $150 million in companies with EBITDA from $10 million to $50 million. Sectors of specific interest include specialty manufacturing and business services.

Houlihan Lokey was the financial advisor to New Directions on this transaction.