SFE Process raises € 6 million to pursue its international ambitions

Founded in 2015 and based in Tomblaine, in northeastern France, SFE Process specialises in the manufacture of equipment for the extraction and purification of molecules using supercritical CO², an alternative to petrochemical-based solvents. With turnover of € 10 million, SFE Process aims to become one of the global leaders in sustainable chemicals, in a market that is constantly growing.

The start-up, located in the Nancy region, is led by a duo of entrepreneurs, Jérémy Lagrue and Brice Sarrail. It recently carried out a Series A round of fundraising, which was managed by Crédit Mutuel Equity and drew investments from Bpifrance, Groupe ILP, and a private investor, Gilles Caumont. With the new funding, SFE Process intends to accelerate the deployment of its technology in France, as well as on the international market, particularly in North America. The company’s leaders, who remain the majority shareholders, also brought employees into the shareholder base.

As the first French company in the sustainable chemicals market to offer two main areas of expertise—process research and development, and the supply of standard equipment for extraction, from laboratory scale to industrial scale—SFE Process mainly targets the pharmaceutical, perfume, and cosmetics industries. However, beyond these historical markets for supercritical CO2 extraction, there are numerous other applications, from cleaning and sterilisation of medical devices to leather tanning via direct permeation without water, and even the recycling of complex plastic materials.

Supercritical CO², also known as a “green solvent,” is a recycled fluid with a neutral carbon impact on the atmosphere. This technology, proven effective for five decades now, is heavily used for the decaffeination of coffee and the extraction of the compound responsible for the “corked” taste from wine corks. Past a certain level of pressure and temperature, carbon dioxide reaches a “supercritical” state, a fourth state of matter between liquid and gas. Supercritical CO² acts as a natural solvent that can be used to extract and purify different molecules just by adjusting the pressure and temperature. This method replaces the use of petroleum-based solvents, such as hexane, which are harmful for humans and the environment. The extraction is done at a low temperature and does not leave behind any residue of the solvent in the extracted product, thus preserving the quality of products and protecting the health of consumers. For the next five years, the company has laid out a roadmap by which it will continue developing the standardisation of its range of extraction equipment, while also making its products more competitive and diversifying its business. For example, in the last few months, SFE Process began offering supercritical fluid chromatography (SFC) equipment using supercritical CO².

“After eight financial years of supercharged growth, driven by both the company’s own equity capital and the support of banking and institutional partners, as well as a team of 44 highly committed employees, we aim to accelerate the company’s growth in international markets, which already represent over 60% of our turnover. We are pleased to be concluding this significant round of fundraising, which brought in € 6 million, a first for our market, and drew the support of four major investors who share the same values of corporate social responsibility and a long-term-oriented philosophy,” explain the founders, Jérémy Lagrue and Brice Sarrail.

“A start-up that has been profitable since its founding—its turnover tripled between 2020 and 2022—and that has a strong capacity for innovation, SFE Process offers great prospects for growth in a dynamic market, driven by the ESG policies of major pharmaceutical companies aiming for carbon neutrality by 2030. This ‘green chemistry’ promises a bright future and aligns with the mission of Crédit Mutuel Alliance Fédérale, which is committed to a more sustainable economy with a smaller impact on the environment,” adds Romain Peiffer, Director of Equity Investments at Crédit Mutuel Equity.

About Crédit Mutuel Equity:

Crédit Mutuel Equity is home to all of the Private Equity activities of Crédit Mutuel Alliance Fédérale: Capital Développement (Capital Development), Capital Transmission (Capital Transfer), and Capital Innovation.

Crédit Mutuel Equity provides capital support to business leaders at all stages of development of their companies—from start-up to transfer—by giving them the resources and time required to implement their transformation projects. Crédit Mutuel Equity brings together over 350 business leaders, who share their beliefs and pose questions within a true network of entrepreneurs that allows each member, regardless of the nature of their project, to benefit from the experience of others. By investing its own capital (€ 4 billion), Crédit Mutuel Equity finances companies’ projects with timelines that are adapted to their growth strategies, in France, Germany, Switzerland, and Canada.

For more information: www.creditmutuel-equity.eu

About Crédit Mutuel Alliance Fédérale:

A leading French bank and insurance company, with over 75,000 employees and serving over 29 million customers, Crédit Mutuel Alliance Fédérale offers a range of services to individual customers, local professionals, and companies of all sizes, via its 4,500 points of sale. Among the most solid banking groups in Europe, its equity capital amounted to € 53.2 billion and its CET1 ratio stood at 18.8% on 31 December 2021.

Crédit Mutuel Alliance Fédérale brings together the Crédit Mutuel banks of the following federations: Centre Est Europe (Strasbourg), Sud-Est (Lyon), Île-de-France (Paris), Savoie-Mont Blanc (Annecy), Midi-Atlantique (Toulouse), Loire-Atlantique et Centre Ouest (Nantes), Centre (Orléans), Normandie (Caen), Dauphiné-Vivarais (Valence), Méditerranéen (Marseille), Anjou (Angers), Massif Central (Clermont-Ferrand), Antilles-Guyane (Fort-de-France), and Nord Europe (Lille). Crédit Mutuel Alliance Fédérale also includes the Caisse Fédérale de Crédit Mutuel, the Banque Fédérative du Crédit Mutuel (BFCM) and all its subsidiaries, notably CIC, Euro-Information, Assurances du Crédit Mutuel (ACM), TARGOBANK, Cofidis, Banque Européenne du Crédit Mutuel (BECM), Banque de Luxembourg, Banque Transatlantique, and Homiris.

More information is available at www.creditmutuelalliancefederale.fr

About Bpifrance

The capital investments of Bpifrance are carried out by Bpifrance Investissement. Bpifrance finances companies at every stage of their development with credit, guarantees, and equity capital. Bpifrance supports them with their innovation and international projects. Bpifrance also supports their export activity through a wide range of products. Consulting, its own university, networking and acceleration programme for start-ups, SMEs and midsize companies are also offered to entrepreneurs. Thanks to Bpifrance, and its 50 regional branches, entrepreneurs benefit from a single, local, and efficient point of contact to support them in taking on challenges.

For more information: www.Bpifrance.fr - https://presse.bpifrance

About Groupe ILP

Groupe ILP is a regional leader in equity investments in companies in France’s Grand Est region, whether they are growing their business or undergoing a transfer. As a local private equity investor, Groupe ILP provides equity investments and quasi-equity financing by acquiring minority stakes in companies. Groupe ILP has three groups of shareholders: public entities (Lorraine region, Bpifrance), banks (Banque Populaire, Caisse d’Épargne, CM-CIC, etc.), and corporate investors (EDF, ArcelorMittal, Areva, Michelin, etc.).

For more information: www.groupe-ilp.com

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